Zero to the origin.
The essence of the great way, the primordial beginning.
Market fluctuations are cyclical; longs and shorts alternate. All trading patterns and market changes stem from the return to the origin, where everything follows the natural laws.
One coin, one mindset.
The foundation of trading starts with self-discipline.
Eliminate greed, fear, impatience, and luck; strictly adhere to the core of trading.
Trade without emotion, don't force plays against the trend.
A steady mind leads to a stable market; a righteous heart paves a long path. Stick to your principles to endure in the market.
Dual forces - the division of yin and yang.
The market splits into yin and yang; it divides between longs and shorts.
Bullish candles indicate a strong push up; bearish candles show resistance and a pullback in the market.
Yin and yang alternate in rotation, longs and shorts switch mutually, rises and falls are the norm.
Understanding the conversion of yin and yang is essential to grasping the underlying rhythm of the market.
Three talents · Heaven, Earth, and Humanity in harmony
Heaven represents the timing of the seven luminaries, Earth represents the market structure, and Humanity represents position management.
Gain the timing and trend, hold structural advantages, and control human tendencies.
Trade only when the three talents resonate; if one is missing, observe and wait, never enter blindly.
Four symbols · Phases of rise and fall
Minor yang trends initiate, the solar trend surges, minor yin at high levels stagnates, and the lunar trend weakens.
The four symbols divide the market's rise and fall rhythm, clearly distinguishing between initiation, surge, decline, and pullback.
Anticipate the phase transitions, catch the market nodes, and follow the trend without going against it.
Five elements · Source of energy
Metal, wood, water, fire, and earth are the core energies driving market rises and falls.
Market rises and falls, strengths and weaknesses, speed and slow, all are dominated by the transformation of the five elements.
The five elements are the foundation of all market changes; all analysis stems from the flow of the five elements.
Six harmonies · Space defined
Six harmonies, delineating market support and resistance, range boundaries.
Consolidation within the range builds strength; breaking the boundaries shifts the market trend.
Understand the spatial layout, control entry, stop-loss, and take-profit positions; act based on evidence, not confusion.
Seven luminaries · Timing sets the trend
Seven luminaries carry the five elements, cycling through seven days, embodying the temporal energy of the market.
Specializing in defining trends, dominating the day's market strength, energy authenticity, and directional bias.
Candlestick patterns can be artificially manipulated, while the timing and energy are never deceptive.
The trend leads, the shape follows; trading must first align with the market's timing.
The trading attributes of the seven luminaries
Monday | Moon day · Water → Choppy and volatile, with significant divergence; avoid heavy positions chasing trades
Tuesday | Fire day · Fire → Sharp fluctuations, emotional turmoil, prices rise and fall rapidly
Wednesday | Water day · Wood → Recovery rebound, vitality warms up, suitable for low-entry layouts
Thursday | Wood day · Wood → Trend continuation, ample momentum, favorable for extension of the market
Friday | Gold day · Gold → Convergence halts rises, turning points frequently emerge, exercise caution at high levels to prevent pullbacks
Saturday | Earth day · Earth → Range consolidation, market lying in wait, patiently waiting for a breakout
Sunday | Sun day · Fire → Emotional surges, frequent divergences, reversals may occur easily at the end of the session
The trading logic of the seven luminaries and bagua
The seven luminaries govern the internal timing trend, while bagua reveals the external candlestick shapes.
• Complement each other: The five elements of the days and hexagram elements share the same source; timing aids the trend, the structure is real, and the trend has strong continuity.
• Mutual restraint and conflict: The five elements of the days restrain the hexagram's elements; although the shape looks appealing, the internal momentum is often insufficient, leading to false signals. Be cautious of reversals.
Bagua · Candlestick solidification
Take five core turning point candlesticks as the axis for divination, specializing in solidification.
Define the structure of market turning points, long and short patterns, and candlestick shapes.
Clearly distinguish between continuation washouts, weak rebounds, and true reversals.
Only observe the tangible market trends, differentiate between true and false structures, without disturbing the temporal energy.
Nine palaces · Cycle defined
Nine palaces analyze market cycles, energy momentum, and exhaustion nodes.
The trend is set, the shape is formed; the market's continuation cycle, post-surge momentum, and final endpoint are all determined by the nine palaces.
When energy is strong, the trend continues; when energy is exhausted, the market ends; anticipate the market's closing nodes.
Ten directions · Execution wraps up
All analysis, judgment, and logical systems ultimately return to execution.
Position management, strict stop losses, profit-taking discipline, and trading rules encompass ten directional trading principles.
Understand the big picture and see through the structure; only strict execution can realize profits.
The overarching principles of trading
Zero extremes return to the source, the origin of the great way
Focus on intention, maintain your mindset
Two instruments of yin and yang, the rotation of long and short
Three talents in heaven and earth, timing and human harmony
Four symbols of rise and fall, cyclical fluctuations
Five elements as roots, transforming the source
Six harmonies define boundaries, space is round and square
The seven luminaries set the trend, timing comes first
Bagua patterns solidify, candlesticks reveal images
Nine palaces define the atmosphere, judging the rise and fall
Ten directions land, execution wraps up