Zen divergence-turning theorem theory: the divergence of a certain level trend will lead to the level expansion of the next center of the trend, the consolidation of a larger level of this level or the anti-trend of the level above this level. This is a very important theorem. What does this theorem show? That is, the deviation from a certain level will inevitably lead to the termination of the original trend type at that level, and then start another trend type at or above that level.
Trend, there must be at least two centers at the same level. For deviation, it will certainly not happen after the first center, but at least it will happen after the second center. The rebound occurs after the second hub, which generally accounts for the vast majority of cases, especially at the level above the daily line, almost exceeding 90%. Therefore, the second center at the level above the daily line should pay close attention to the occurrence of rebound. At a small level, such as 1 minute, this ratio is smaller, but it also accounts for the majority. Generally, it is quite rare that divergence will occur after 4 or 5 centers.
If the first center deviates, it is not a real deviation, but a consolidation deviation. Its real technical significance is actually an attempt to leave the center and be prevented from returning to the center because of limited strength. Generally speaking, small-scale consolidation is of little significance, and it must be combined with positions. If it is high, the risk is greater, often licking blood, but if it is low, the meaning is different. In fact, the second and third types of buying points are mostly composed of consolidation and deviation, while the first type of buying points are mostly composed of trend deviation. Generally speaking, the second and third types of buying points have three trends, and the third paragraph often breaks through the limit position of the first paragraph, thus forming a consolidation deviation. Note that the first and third paragraphs are regarded as a comparison between two trend types, which is somewhat different from the situation in trend deviation. Whether these two trend types are necessarily trends is not a big problem, and the two consolidation can also be compared in the consolidation deviation.
If a trend at a certain level constitutes a deviation or consolidation deviation, this trend type is called a deviation at a certain level. For a+A+b+B+c(a, b, c represent the sub-level trend type; A, b stands for center), which means that the strength of section C is less than that of section B. From the point of view of B, we assume that b+B+c is an upward process, then B can be regarded as leaving the center B downwards, and C can be regarded as leaving the center B upwards. The so-called parietal gyrus, that is, the posterior center, is weaker when you leave upward than when you leave downward. The center has this characteristic, that is, whether you leave upward or downward, it has the same pull-back effect. Since upward deviation is weaker than downward deviation and can be pulled back to the center, upward deviation can of course be pulled back to the center. For the upward trend of b+B+c, this constitutes a top cycle, while for the downward trend of b+B+c, it is. This analysis is equally effective for integrating differences. In fact, from the central point of view, consolidation and differentiation are essentially the same, but they are different in strength, level and central position. Similarly, from the perspective of a pure hub, it is simply a+A+b+B, where B is greater than A. At this time, B does not need to continue in the original direction, but runs in the opposite direction. For example, a+A+b+B goes down, but a+A+b can actually be regarded as a callback of B's upward deviation. For the hub, it is not required that all the departures must be in the order of up and down. It is completely allowed to leave up once and then leave up again. From this point of view, it is natural to directly reverse from B. Then, whether this reversal is successful or not, we might as well write this subsequent reversal as C. Then we only need to compare the strength of a+A+b and C, because the pull-back strength of hub B is the same in these two sections. If C is weaker than a+A+b, of course, the reversal is unsuccessful, which means that we must go back to the center and pull it back at least once to confirm whether it can constitute the third buying point. Compared with the strength of a+A+b and c, there is no difference between the strength of A+A+B and the strength in the opposite direction.
Deviation from a certain level will inevitably lead to the termination of the original trend type at that level, and then start another trend type at or above that level. The turning point must be caused by retrogression, but the turning point caused by retrogression is not necessarily a level. If there is a one-to-one correspondence between the inflection point and the pullback, then the market is too boring and rigid, and it is possible that this small-scale pullback will lead to a large-scale inflection point and make the market full of vitality. There must be adjustments later, but it is not necessarily a big adjustment. If it is consolidation, it will often turn into a third buying point. Whether there is a big adjustment in the small level of back relaxation must be viewed from the big level, which is also what the interval set method says. For example, a 5-minute backward slide depends on whether it is possible to enter the backward slide section in 30 minutes. If it is in the 30-minute main swell section, the 5-minute pullback is often a small adjustment in the session, and the operation of this pullback is of little significance. Otherwise, every time it is 1 minute, I don't know how to make up for it. Very tired. Generally, this deviation can be hedged in intraday trading, but it should be paid full attention to if it meets the interval set. The necessary condition for low-level deviation to trigger a large-level downward trend is that the third selling point appears in the last secondary hub of this level trend; The necessary condition for small-scale deviation to trigger a large-scale upward trend is that the third buying point appears in the last secondary center of this level trend.
After a deviation, whether it is a consolidation deviation or a real deviation, the theory can only guarantee to pull back to the original center, which is the correct way of thinking. Then, what will happen after the callback involves prediction. The correct way of thinking is to completely classify what happened after the callback and decide your own countermeasures according to the corresponding consequences of each classification.