🌹Crypto world Chan theory introductory guide: Solidify your foundation, unlock precise buying and selling secrets (recent free teaching + illustrations)

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1. Complete Analysis of Core Basic Concepts of Chande Theory
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1. Pattern: Key turning points in K-line shapes.
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• Top Reversal Pattern: When we observe three adjacent K lines, if the middle K line's high point stands out among the three and reaches the highest point, while its low point is also the highest among the three, then the high point of this K line is defined as the top, and this formation is called the top reversal pattern. It often indicates a temporary slowdown or even a reversal in the short-term upward momentum of the market, much like a small peak on a mountain climb, possibly followed by a downhill path.
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• Bottom formation: In contrast to the top formation, if among three adjacent K lines, the high point of the middle K line is the lowest among the three, and the low point is also the lowest, then its low point constitutes the bottom, which is the bottom formation. It resembles a glimmer of hope after a market winter, often signaling that a downtrend is about to bottom out and rebound, initiating an upward trend.
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2. Segment: The basic unit of constructing trends: A segment is the fundamental building block used to depict price movements in the theory of Chan. It is formed by connecting two adjacent and critical peak and trough formations, but there must be at least one independent K-line as a gap between the two to distinguish different phases of price fluctuations. An upward segment reflects the process of price rising from the bottom, known as an upward segment; conversely, a downward segment reflects the price retreating from a high.
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3. Line Segment: Description of price movement on a larger scale: A line segment is made up of an ordered combination of an odd number of strokes, with the most basic line segment containing at least three strokes. Moreover, these first three strokes must have overlapping parts to ensure that the line segment has coherence and trend. An upward line segment demonstrates a continuous price advance, like a steady rise in the market; a downward line segment represents a downward trajectory of price retreat.
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4. Central Pivot: The core hub of price movement and energy accumulation: In specific levels of price movement types, the central pivot is a crucial concept. It is defined by the overlapping sections of at least three consecutive sub-level price movement types. When analyzing upward movements, we focus on the overlap of the sub-level movements "down - up - down"; when examining downward movements, the overlap of the sub-level movements "up - down - up" is key. The central pivot acts like an energy transfer station in the market, where both bulls and bears engage in fierce competition, serving as an important basis for judging the direction and strength of subsequent price movements.
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5. Divergence: Signal Light of Trend Exhaustion: In the process of price trend evolution at a certain level, if the strength of the subsequent movement, whether upward or downward, significantly weakens compared to the previous movement, it is akin to an athlete gradually losing strength during the later stages of a sprint, which forms the phenomenon of divergence. Divergence is the external manifestation of the internal changes in market momentum and often indicates that the current trend is about to come to an end, providing key clues for investors to grasp buying and selling opportunities.
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2. Practical Analysis of Precise Buy and Sell Points in Chan Theory
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1. First type of trading point: Pioneer signal of trend reversal: When the market is in a clear trend, as the price moves, once a divergence occurs, it's like a high-speed train starting to slow down, which is a strong indication that the trend is about to reverse. The point corresponding to this situation is the first type of trading point. For investors, this is a highly forward-looking entry or exit opportunity. Seizing it allows one to gain an advantage at the early stage of the trend change.
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2. Second type of buying and selling point: Stable entry opportunity after trend reversal: After a trend reversal occurs, the market often experiences a certain amount of corrective consolidation. When the price first retreats to the previously formed central range and fails to break through the previous high (after an upward trend reversal) or the previous low (after a downward trend reversal), this point gives rise to the second type of buying and selling point. Compared to the first type of buying and selling point, it is more stable, allowing investors more time to confirm the change in trend and reduce the risk of misjudgment, making it a high-quality entry point for grasping mid-term trends.
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3. The third type of buying and selling point: key confirmation points for trend continuation or emergence: when the price breaks away from a certain central range, starting a new trend journey, and then a pullback occurs. If the pullback is just right, not falling back into the "gravitational range" of the central range again, it is like a spacecraft successfully escaping Earth's gravity and heading towards a new orbit; at this moment, the third type of buying and selling point is generated. It not only confirms the continuation of the previous trend but may also herald the vigorous rise of a new trend, providing investors with an excellent opportunity to follow the trend and expand profits.
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To master the theory of trading, one must start from these basic concepts, carefully ponder the nuances of buying and selling points, and repeatedly practice in the crypto world investment scenarios, in order to see clearly and accurately grasp the pulse of the market.

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