Hexun Investment Advisor Guo Lei: How Is the Central Axis Upgraded?

How exactly do the central expansion and extension upgrade? Is a pullback to the central after a third buy considered an upgrade? These two signals are enough to judge. Guo Lei from Hexun Investment Analysis explains that there are two key signals for central upgrade: the first is whether there are three types of buy and sell points, and whether the subsequent trend has formed a larger-level central. Today’s video explains clearly and thoroughly—after watching, you can use it directly.

First, the core sign of central expansion is that there are no three types of buy and sell points extending or expanding. That’s the biggest difference. Many people can’t distinguish between central extension and expansion; it’s really about whether there are three types of buy and sell points. For example, if a central forms from 0 to 4 with an up-down structure, and then from 5 to 6 moves upward but doesn’t form a third buy at 6 and directly falls back into the original central zone, that’s an extension. The original central isn’t terminated and continues to oscillate. If there is a third buy or third sell, then the 0 to 4 central remains, and from 5 to 6 breaks above the upper boundary of the central, and when it pulls back to 6 without breaking the upper boundary, forming a standard third buy, then the original central is terminated. Even if later from 7 to 8 it pulls back into the original zone, it’s not extension but enters a central expansion mode. Simply put, three types of buy and sell points indicate expansion; once they appear, the original central ends. Pulling back into the original zone then is expansion, not extension.

Second, central expansion is not the same as an upgrade. An upgrade requires forming a larger-level central. Many friends think that entering expansion automatically means an upgrade, but that’s incorrect. Expansion only has the potential to upgrade. True upgrade requires a key condition: the subsequent trend must form three segments of the same level as the original central, ultimately forming a larger-level central.

For example, a central forms from 0 to 4. Then from 5 to 6, it breaks through and retests, forming a three-wave pattern into expansion. From 6 to 7, it moves upward, and from 7 to 12, it consolidates at the same level as the original central. Then from 12 to 13, it consolidates at the same level downward, and from 13 to 14, consolidates at the same level upward. These three segments (7–14) overlap vertically, forming a new central of a larger level than the original. This is a true central expansion and upgrade.

The summary rule is: for expansion, look for three buys; for upgrade, look for three segments. First, check if there are three buys or sells—if yes, it may expand; if not, it may extend. Then, see if there are three overlapping segments of the same level—if yes, it upgrades; if not, it’s just expansion without upgrade. With this approach, no matter how the market changes, you can clearly judge whether the central is extending, expanding, or upgrading, providing a clear basis for operation.

(Edited by: Wang Gang HF004)

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