In high-difficulty zones, only extreme expertise can "pick the chestnuts from the fire." Friends wanting to learn technical skills, refer here!

Hey, iron-bros, hello everyone! Last week’s market action was extremely extreme—on only two consecutive days did the number of advancing stocks reach merely a few hundred (on Thursday, 893 stocks advanced, on Friday, 698 advanced and 24 hit the daily lower limit). There was no need for teachers to deliberately “cool things down”; the market had already become completely quiet. During last year’s bull market, authoritative statistics showed that the overall market’s loss ratio reached 81.1%. Among retail investors with principal below 100k, the loss ratio was even as high as 98.7%. What’s more, this was in a period of heightened volatility in the recent行情. Under such conditions, feeling anxious, confused, or even doubting one’s own judgment are extremely normal emotions. Recently, I’ve been repeatedly reminding everyone: friends whose technical skills aren’t solid may consider going to cash and waiting. If you want to learn technicals, please pay more attention to the articles and viewpoints I share—though I don’t know whether these contents truly helped everyone. As a “Hall of Fame” member, we’ve always stayed low-key and never deliberately promoted past performance (if we objectively displayed performance, it might make people feel it’s overly unbelievable!). But please believe that every single knowledge point we sincerely share with you—if you miss even one, it will be a lifelong regret that can’t be forgiven! [Taoguba]
1. Deeply understand the market and respect it.
We’ve been emphasizing again and again that the current Middle East conflict, as a key external factor, has a far-reaching impact on the market and directly leads the market to be in a clear downward trend. Therefore, right now the overall行情 is like “pulling chestnuts from the fire,” with the difficulty of execution greatly increased—this is also the core reason we have always recommended that friends who aren’t technically solid should temporarily go to cash and wait.
Under this premise, if your technical foundation is solid, you can focus on the following market characteristics:
(1) The market is currently in a setup where sell-side trapped supply above is suppressing, while below there is support from main force capital. A one-way selloff trend won’t appear; overall, the market will maintain a bottom-ranging consolidation range. If you can precisely catch the tempo, maybe you can seize the “pulling chestnuts from the fire” opportunity;
(2) The current market is controlled by quantitative funds. If you can familiarize yourself with the operational characteristics of quantitative funds and follow their pace, then there is feasibility for “pulling chestnuts from the fire”;
(3) The core technical key to dealing with the current行情 is: first, the rotation mindset and the W structure (the chart below is the script content from last Thursday’s live session); second, digging for individual stocks that have “independent logic.”

2. Build a rules system, and be decisive in killing.
Without rules, nothing can be accomplished. Only by building your own trading rules system can you manage entries and exits with appropriate discretion, and ultimately achieve positive feedback and a positive cycle in trading.
** (1) Core points of the rules system.**
1. Quickly capture signs of weakening in the order book. In a market controlled by quantitative funds, once the market tape turns weak, quantitative funds may continue to smash the market. Therefore, once you detect signs that the market is turning weak, you must immediately “make reductions” (unsubscribe in a timely manner)!
I shared an original “Trading Playbook: Unsubscribe Rules” in the training camp. It covers 7 core unsubscribe rules, including the 7-point rules, moving-average rules, and the rule that the stock price is never allowed to flip from red to green, etc. (In actual live training, the extended rules go far beyond 10.) With these rules, you can capture signs of weakness on the tape at the earliest time and make timely “reductions” in your operations.
** 2. Quickly capture signs of strengthening in the order book.** In a market controlled by quantitative funds, once the tape shows signs of strengthening, quantitative funds may continue their offensive actions and keep lifting the stock price. Therefore, once you detect signs that the market is turning strong, you must immediately follow through with “make additions” (follow it in time)!
I livestream every day in the training camp, breaking down key technical skills for everyone: candlestick patterns, changes in trading volume, the movement of large orders, market sentiment, order-book details, time-and-sales columns, the comparison between stock price and intraday moving averages, and the linkage between stock price and the market and sector index movements—helping everyone master offensive techniques. Sorry that I originally planned to write “Trading Playbook: Follow Rules,” but because plagiarism is happening frequently, these core techniques can only be explained briefly through occasional livestreams for now. How much everyone can learn depends entirely on one’s own effort and attentiveness.
** 3. Be decisive and don’t drag things out.** In a market controlled by quantitative funds, whether the tape shows strengthening or weakening signals, the price action may change drastically within moments (either it quickly rallies or quickly sells off). Therefore, I keep emphasizing in the training camp: “Believe early when it’s early to believe; be decisive in the kill.” Specific cases are as follows:
** (1) Make additions (follow) case.** In last Thursday’s evening livestream, we clearly mentioned that in the commercial space sector, we strongly favored the SpaceX concept. For students who are following that theme in the training camp, even if that day’s individual stock position is on the higher side, there’s no need to worry. From a technical perspective, the key lies in a deep understanding of and flexible application of the W structure. The training camp’s concrete training details about making additions and reductions are as follows:

 From the specific training nodes: after the end of the call auction, the individual stock opened up more than 1 point. Combined with the fact that the pullback over the prior two days had already released enough selling momentum, this gap-up entirely matched expectations. After the market opened, the stock price did not show any signs of weakening downward—so we trained “make additions” (follow) at the first moment. The result: a straight vertical 90-degree surge with a full-mark performance! 

 Do you truly understand the current market characteristics and the operational logic of quantitative funds?  

(2) Make reductions (unsubscribe) case.
Besides the “pair-count” signals everyone is familiar with, the training camp also reinforced training on core technical nodes such as pressure levels and key price points.
In the chart below, last Friday an individual stock rallied intraday to 31.61 at the previous high (typically a strong resistance level), and yet it lacked the strength to continue pushing higher. We trained to “make reductions” in time. By the market close, the stock’s intraday range was about 8 points, effectively avoiding the risk of pullback.

3. Deeply dig into individual stocks—have a plan in mind
In last Thursday’s livestream, I clearly told everyone that we should focus on the fiber-optic sector (for friends who are interested, you can check around the 1 hour 25 minute mark in the replay). At the same time, I also sincerely reminded everyone: even though the training camp that day followed fiber-optic sector stocks, their gains were only about 2 points and the performance was not outstanding—but you must focus on seeing the overall strength of the fiber-optic sector and the “expectation gap” behind the individual stocks. The training camp has a recent classic case that, whether from fundamental mining or technical analysis, is enough to serve as a reference at the level of an MBA textbook:
(1) Case overview
The case shown in the chart below is Fiber-optic XX Co., Ltd. The training camp started tracking this stock from node 1 and clearly emphasized that a “main-force shakeout” signal appeared that day. Node 2 signaled to make reductions (unsubscribe), while predicting that a pullback action would occur at node 3. After node 3 fulfilled the expected pullback, nodes 4 and 5 continued to signal make additions (follow). Last Friday, the stock delivered a full-mark performance.

(2) Logic mining
The training camp kept following all developments of this company. After the company released a bid-winning announcement on April 1, we published three long articles in succession for in-depth breakdown and analysis, helping everyone understand the underlying investment logic. One of them is as follows:

(3) Order-book and intraday technical analysis
Last Friday the stock opened higher. At node 5, the price stood above the pressure level of the previously dense volume trading area. At this time, the pressure level had already turned into a support level. Therefore, after the end of the call auction, we made our position clear: as long as there is follow-through from buyers (no high-open low-close), you can prioritize making additions (following). After the morning rally, we signaled to make reductions (unsubscribe). After the afternoon tape turned stronger, we signaled again to make additions (follow), precisely capturing every wave of tempo.
From these cases, it’s not hard to see that investing in stocks is fundamentally a highly professional, extremely difficult undertaking—absolutely not something you can figure out completely in just one or two days. Accurate grasp of technicals and deep mining of individual stocks both require long-term accumulation and skilled application; you absolutely can’t be casual. Therefore, in the current volatile market, if your technicals aren’t up to par, it’s still recommended that you stay in cash and observe.
Finally, let me add one more thing: there’s always someone who doubts that I’m bullish on the commercial space sector. But in the recent training camp, the students we’ve continued to track in that area are already close to historical highs. We’ve always emphasized that we firmly don’t touch individual stocks in downtrends. After filtering by exclusion, there aren’t actually many stocks that meet the conditions right now. Some friends don’t do a post-trade review; once they lose money, they come to unsubscribe or something like that. Is it really that hard to focus on stocks in uptrends? We’ve repeatedly said: don’t look at stocks below the 20-day moving average. How simple, straightforward, and efficient a technique that is!

4. My view on tomorrow.
From a technical perspective, last Thursday there were 893 advancing stocks, and last Friday there were 698 advancing (with 24 hitting the daily lower limit); the market was quite panicky. After the three-day short holiday to reset, panic sentiment has been released. Following the W tempo, the probability of a rebound tomorrow increases. From a news perspective, the US-Iran mediator is making the final push to secure a 45-day ceasefire; Trump said an agreement is expected to be reached by the 7-day last deadline; the number of Strait crossings has risen to the highest level since early March. This provides conditions for the market to see an “ice-point” rebound tomorrow.
Even so, we still need to remind everyone: the current rebound still has uncertainty. When the market sells off, making additions is where you have the odds—so you must lock in the tempo.
For hot themes, last Thursday fiber-optics spread into the cable ecosystem. On Friday, cables lost momentum, and Friday’s leader, Lianfei Fiber-optic 363.63, doesn’t seem to know what the main force is trying to express—so we also can’t chase the price wildly here. The training camp’s approach is: anchor at high positions for low-position catch-up gains.
In commercial space, we should focus on opportunities tied to the SpaceX chain, and at the same time watch trend stocks where strong main force is clearly involved.

Thanks to the 4 friends for cheering up my previous post: @谢智颖 @天天回本中 @苏格拉毛 @GH安然
Thanks to all the brothers who supported with tips for the livestream and the articles last week: @幸福的四叶草 @苏格拉毛 @笑圣贤 @苔花也学牡丹开 @顺势而为1126 @洋芋擦擦 @天天回本中 @A打工仔A @理想7 @lcq1678 @米转为 @葵花23 @chianjiaren @这不完了吗 @木棉花开420 @455758026 @卓尔不群 @叶子红绿灯 @紫藤花开紫娇美 @阿罗米 @海鸥h @北京大红果 @杨淡然FF @小李的炒股
Thanks to all the friends who know how to be grateful! Wishing everyone a rainbow in the stock market and all the best in everything!

Statement:

** Investing involves risk; trading requires caution. Plans are never as fast as changes—everything should follow the order book. The content of this article belongs to my personal thoughts and records, and is only a sharing of my understanding and post-review of the market. It does not constitute any investment advice; for reference only. If you act on it, you bear responsibility for gains and losses!**