The core and essence of entanglement theory

First, the core and essence of entanglement theory

The core of entanglement theory is several correlation laws. When the trend reaches a certain level, these association rules make the possible completion of a trend "extremely clear and narrow". Therefore, only by learning the law of association can we make great efforts in trend judgment.

The essence of entanglement theory is that "the trend is perfect" and the trend is perfect, which theoretically solves all open and free economic, financial and securities markets, and all trends can be accurately positioned.

There are three kinds of constraint laws related to constraint theory:

1, including the K-line typing binding method; It is enough to include K-line typing and binding rules, and it is enough to take shortcuts according to simple K-line processing.

2. Rule of pen combination; The rule of pen binding is the most basic. Without a clear understanding of the law of pen binding, entanglement is impossible.

3. The law of trend combination. The above two binding laws are the first part of the trend definition, and the starting function A0=f 1(B). The trend combination law is the second part of the trend definition, and the recursive function An=f2(An- 1). Of course, the trend we must read and talk about is the trend combination law f2. This is also the most wonderful, mathematical and artistic place of entanglement theory.

Second, the core technology of the operating system

The pestering teacher said: the rhythm of operation is the most important. Operation, in the final analysis, is to buy a thing and sell a thing. The rhythm comes from a clear understanding of the level. Without the level, any trading point is useless, let alone the rhythm. The teacher said: grasp the two basic points: center, trend type and level, and the others are auxiliary.

Therefore, the three analytical techniques of bundling theory "center, trend and level" confirm the first, second and third trading points by assisting in judging "deviation" and "moving average trend strength, volume-price relationship", which is the core technology of bundling theory operating system.

(A), wrapped in the center of the Zen trend

Trend center: a part of a specific level trend type, which is overlapped by at least three consecutive sub-level trend types. The specific calculation is based on the overlap of the first three consecutive sub-levels, and the strict formula can be expressed as follows: the three continuous trend types of sub-levels A, B and C are A 1A2, B 1B2 and C 1C2 respectively. Then, the central interval is (max(a2, b2, c2), min(a 1, b 1, c 1)), but it can actually be done by visual inspection, so it is not so complicated.

For example: 5-minute hub, as long as three 1 minute trend types overlap.

The types of trend centers are: 1, and the center is formed; 2. Central extension (shock); 3. Central newborn; 4. Central expansion

In short:

1. Hub formation: a certain level trend type is overlapped by at least three consecutive sub-level trend types;

2. Central extension: the extension cannot exceed 9 sub-levels around the central shock wave, otherwise it will become a larger level;

3. Central rebirth: that is, forming a trend;

4. Central expansion: More than 9 shock segments are formed around the center, which will expand into a higher-level center.

note:

1. To form a large-scale hub, there must be fluctuations first. Without fluctuation, there is no problem of expansion and extension.

2. The first three trend types of a sub-level form the trend center of this level after completion. The completed trend type is obvious on the sub-level diagram, so you don't need to look at the diagram below the sub-level.

In other words, the trend center consists of at least three consecutive sub-level trend types overlapping. There is a recursive problem here, that is, this level cannot go on indefinitely. In practice, the trend center of a level that cannot be decomposed in the end cannot be defined as "at least three consecutive sub-level trend types overlap", but should be defined as at least three K-line overlapping parts of the level unit. Generally speaking, for practical operation, the minimum indecomposable level is set to 1 minute or 5 minutes. Of course, it can also be set to 1 sec, but it doesn't make much difference.

Merge: In any trend at any level, a complete trend type contains only one trend center, which is called merge at that level.

Trend: In any trend at any level, a complete trend type contains at least two trend centers in the same direction in turn, which is called the trend at that level. The upward direction is called rising, and the downward direction is called falling. Please note that there must be no overlap between the trend centers in the trend.

(2) Trend type

Distinguishing "trend types" is the key of entanglement theory analysis technology and the basis of analysis.

The trend has been divided into different levels under the classification and subsection specification of entanglement, that is, "trend and arrangement" (the trend is divided into "ups and downs"). Merger is different from the traditional general terms, but it has a strict definition. At least two "hubs" can form a trend; Only one "center" is defined as merging. As long as each sub-level trend type returns to the center, it is regarded as a "consolidation" trend regardless of its size. So the ups and downs of consolidation are less than the trend. This must be understood.

There are different levels of trend types. Generally, the periods of 1F, 5F, 30F, day, week, quarter, month and year set in software templates are all drawn up as corresponding parents, but this is not necessarily the case. Strictly speaking, the corresponding hierarchical relationship comes from the recursion of "dividing the transaction", but it is very tired and unnecessary, and the cycle set by software is the best. According to the premise that "the trend type at this level consists of at least three sub-trend types", we can manually modify the pens and paragraphs given by the score formula. Sometimes 5F and 30F don't necessarily correspond up and down, 5F corresponds to 15F, so the latter one is used. The key is that 15F 30F ended the previous trend earlier and more intuitively, which is more conducive to judging the current trend.

The essence of entanglement theory is that "the trend is perfect" has two meanings:

1, whether it is up or down or consolidation trend, it will eventually go through.

2. The end of the rise must be the beginning of the fall. This has a great inspiration: when the end point of the downward trend is the best buying point, it is called "the first buying point!" " The key is how to judge the end of the previous downward trend.

The stalker uses standardized formulas to guide our analysis: trend a+A+b+B+c, consolidation a+A+b, bc segment co-directional divergence and ab segment co-directional divergence are the only basis for judging the end of trend type. Because of the AB center, we have the direction to judge the trend. The definition of "trend center" is that it consists of at least three overlapping sub-level trend types.

Generally speaking, a daily line can always draw three strokes on 30F. If not, it can be redrawn according to whether the yellow and white lines pass through the O-axis.

(3) Level

The subtlety of entanglement theory lies in hierarchy. In reality, the hierarchy solves all open and free economic and financial securities markets, which can be completely classified. In other words, you can make profit trading according to your own operation level, and you can also wander between various trend levels for all-round three-dimensional operation.

"Grade" is often a problem that beginners easily ignore. Many people who have doubts about entanglement theory are actually people who have forgotten or paid insufficient attention to it, but this problem is the most critical and fatal. No hierarchy, no direction. The big level (annual line, weekly line and daily line) is the general direction, and the small level (60F, 30F, 15F, 5F) is the local, detailed and small direction. Large-scale fluctuations can be dealt with by shocks and financing. At this time, the inevitable choice is to hold shares. If there is technology, use small-level trading points to increase revenue and reduce costs; If the technology is not good, you can only hold shares with peace of mind, otherwise you will risk losing chips at small-scale trading points and wait for the arrival of large-scale selling points. After selling, I patiently hold the currency, moved by a lot of fluctuations, waiting for the arrival of large-scale buying points, and so on, nothing else.

"Level" is determined by the amount of funds, personality and system risk, so it is not necessary to define level as geometric axiom. In fact, grades are everywhere, and the essence of grades is the difference between scale and quality. In addition to the difference in scale, 1 wanhe 1 wanhe also lies in the different periods of intervention. 10,000 can enter and exit freely at the level of 1F, and100,000 can only be involved if the establishment of "bottom classification" of daily line is considered at least.

There are levels for trend types, levels for retrogression, levels for funds, levels for operations, and levels for trading. Generally speaking, the level should be "classification before classification". The idea of classification runs through the whole process of entanglement theory and is the soul of entanglement theory. The pestering teacher once said that many people are obsessed with the god-like conjecture theory, but they don't know that the simplest classification is the greatest truth. A theory that can be completely classified by science must be a complete theory.

We can roughly regard the cycle of 1F, 5F, 30F, day, week, quarter, month and year as the promotion of grade, but as mentioned before, it should also be rigidly corresponding. In fact, sometimes 15F and 60F are good auxiliary judgments. The pestering teacher has repeatedly warned that stock trading is ending the one-track mind.