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Today, we will discuss several key concepts and strategies in stock market trading.
First, let's focus on the time cycles of the market. We observe that there are different trend characteristics in the 4-hour and 30-minute time frames. Currently, the market is mainly oscillating around the center of the 30-minute cycle.
In an upward trend, we can identify three possible price patterns. A strong bullish market may form a steep ascending channel, a bullish market may show a relatively moderate upward trend, while a consolidating upward movement is the most common pattern. Based on the current market conditions, we estimate the probability of a consolidating upward movement to be 50%, the probability of a strong upward movement to be 40%, and the likelihood of a super strong bullish market to be only 10%.
However, we must remember that market trends are dynamically evolving. We can only verify the accuracy of predictions when the price actually reaches the expected position. On the surface, we can observe the alternating appearance of fluctuations and rises on the candlestick chart. But on a deeper level, we need to pay attention to the interaction and transformation between the central and support lines within the trend structure.
In trading practice, we can employ three different analytical methods:
1. Support and Resistance Line Theory: This is a technical analysis method, similar to the "Eighteen Dragon-Subduing Palms" in martial arts, focusing on identifying key price levels.
2. Central Theory: This is a structural analysis method that can be likened to the "Nine Yin Manual" in martial arts, focusing on the inherent laws of market movements.
3. Naked candlestick and candlestick combination analysis: This method focuses on the price fluctuations themselves, which can be likened to "innate skills" in martial arts, being intuitive and effective.
By comprehensively applying these methods, we can gain a more thorough understanding of market trends and develop more precise trading strategies. Remember, successful trading requires not only theoretical knowledge but also continuous practice and the accumulation of experience.