Completeness of Buy and Sell Point Analysis in Cryptocurrency Exchanges

The so-called 100% safe buying and selling points are points after which the market must turn, with no ambiguity or need for discernment involved.

Type II buying points do not necessarily appear at the top or bottom of the central zone; they can occur anywhere. When they appear below the central zone, the subsequent strength is questionable.

Teaching you stock trading 21: The completeness of Chan Zhong Shuo Chan’s buy and sell point analysis

Previously, three types of buy and sell points have been discussed. A very practical question is: besides these three types, are there any other types of buy and sell points? The answer is no.

It must be emphasized here that these three types of buy and sell points are all guaranteed by theory—100% safe buy and sell points. If one does not fully understand the absolute safety of these three types, it is impossible to have a thorough understanding of Chan Zhong Shuo Chan’s technical analysis theory. Ultimately, market trading boils down to grasping buy and sell points; the completeness of buy and sell points reflects the completeness of the theory. The so-called 100% safe buy and sell points are points after which the market must turn; there is no ambiguity or discernment needed.

From the above series of analyses on the central zone in Chan Zhong Shuo Chan’s trend, it is clear that at any point in the trend, there are two possible outcomes: continuation or reversal of the trend. In other words, for a certain inevitable buy point, one of two conditions must be met: either an upward continuation or a reversal from below to above. For continuation, it can only occur during an upward movement; otherwise, it’s meaningless to talk about continuation. For buy points generated during an upward continuation, there must be a central zone present beforehand.

For reversals, the previous trend can only be downward or sideways; regardless of whether it is downward or sideways, a central zone must exist before the buy point.

In summary, regardless of the previous trend, there is only one corresponding situation: either continuation or reversal after a central zone appears. This analysis applies equally to sell points. Therefore, all buy and sell points must correspond to the relationship with the nearest central zone at that level. For buy points, the points generated below the central zone necessarily correspond to a reversal; those above the central zone necessarily correspond to continuation. Central zones have three states: continuation, expansion, and emergence.

If it is a continuation of the central zone, then no buy points can occur above the central zone because a continuation requires all trend segments within the central zone to turn downward. At this time, only sell points are possible.

In contrast, during expansion or emergence of the central zone, buy points will exist above the central zone. These buy points are the third type.

In other words, the third type of buy point is generated during the expansion or emergence of the central zone. Expansion leads to a larger central zone at a higher level, while emergence forms an upward trend. These are the two inevitable scenarios following the third type of buy point.

For larger-level central zones, there is no immediate attractive upward trend. Therefore, in practical operations, avoiding the first scenario is a major concern. However, as long as the conditions for the third type of buy point are met, profit is inevitable afterward—that is the key issue.

Buy points formed below the central zone, if the central zone is in an upward trend, do not necessarily form buy points below the central zone. Such buy points can only exist within downward or sideways trends. Once an upward trend is confirmed, the first and second types of buy points are no longer possible; only the third type remains.

In sideways markets, expansion and emergence of the central zone cannot guarantee that buy points will lead to an upward reversal, because expansion and emergence can develop downward. For continuation of the central zone, it can be broken at any time, ending the continuation, and does not necessarily lead to an upward reversal. Therefore, in sideways markets, buy points below the central zone are not guaranteed. Only after a decline is established can buy points appear below the central zone—that is the first type.

The second type of buy point is closely related to the first. After the first type appears, only sideways and upward trends will occur. The second type of buy point is formed at the low point of the second segment of the secondary trend following the first buy point. According to the principle of perfect trend, a third upward secondary trend will inevitably follow, making this buy point absolutely safe. The second type of buy point can appear anywhere relative to the central zone: below, on, or above. When it appears below the central zone, its strength is questionable; expansion of the central zone is highly likely. When it appears within the central zone, the chance of expansion or emergence is about equal. When it appears above the central zone, the chance of emergence is high. Regardless of the situation, profit is guaranteed.

Clearly, the first and second types of buy points occur sequentially and cannot overlap. The first and third types of buy points cannot overlap either—one occurs below the central zone, the other above. Only the second and third types can potentially overlap. This situation occurs when, after the first type appears, a secondary trend sharply breaks through the previous lowest central zone, then a retracement occurs above that zone without touching it. In this case, the second and third types of buy points overlap. This is the only scenario where they can coincide. Of course, in theory, there is no absolute reason to believe that after the second and third types overlap, it will necessarily only result in a larger central zone expansion. In practice, once this occurs, a significant upward trend at a higher level often follows.

Adding a note: From the perspective of a super-large bull market, China has never experienced a bear market. Just open the Shanghai annual chart and see that from 1992 to 2005, the three secondary trend segments of the Chan Zhong Shuo Chan central zone completed perfectly over 13 years—a perfect time window.

From the annual chart perspective, the real bull market in China has only just begun, because this central zone is the first annual central zone in China’s stock market, spanning from 998 to 1558 points.

At the annual level, before the next annual central zone is established, China’s stock market can only experience a quarterly adjustment. The first quarterly adjustment that does not fall back below 1558 points will constitute the third type of buy point at the annual level, followed by at least a rise similar to last year’s magnitude.

Thus, the theory of this ID can be used to judge major trends from such a macro perspective. Currently, China’s stock market has nothing to worry about; even if a correction occurs, it will be at most a quarterly correction, which will then form a third type of buy point. More importantly, at the annual level, the market is still in the first secondary upward phase. For a second quarterly correction to occur, a monthly central zone must first appear. Currently, this central zone has not yet formed. In other words, the first phase of the annual trend shows no signs of completion; it could easily continue to rise to 6000 points before ending. (Wow, such a bullish person!)

In the next ten years, the brilliance of China’s stock market will be clearly visible, according to the perfect trend principle of this ID.

The analysis of sell points is the same. Summarized, there is the completeness theorem of Chan Zhong Shuo Chan buy and sell points: the market will inevitably generate profitable buy and sell points, only of the first, second, and third types.

The same analysis can prove:

The completeness theorem of Chan Zhong Shuo Chan’s rise and fall: any upward or downward movement in the market must start and end with one of the three types of buy and sell points in Chan Zhong Shuo Chan. In other words, the market trend is entirely composed of such segments, with segment endpoints being one of the three types of buy or sell points.

Quiz: For any segment, its endpoints must be a buy point and a sell point. List all possible combinations between different types of buy and sell points. If both endpoints of a segment are of the same level, what combinations are absolutely impossible?

( Note: 1 buy - 1 sell, 2 buy - 1 sell, 1 buy - 2 sell, 2 buy - 2 sell; 1 sell - 1 buy, 2 sell - 1 buy, 1 sell - 2 buy, 2 sell - 2 buy.

What is absolutely impossible is a segment starting with a 3 buy or 3 sell point—specifically, 3 buy - 1 sell, 3 buy - 2 sell, 1 buy - 3 sell, 2 buy - 3 sell. ) **$MASA **$MERL **$ALPH **