The Zen Master's Chan Theory and naked K (indicator-free K-line trading) are among the highest realms of K-line learning. They all pursue one thing:

Do not rely on indicators, only use the price itself to see trends, rhythms, and human nature.

Below, I will clarify three things for you: 1️⃣ What is Chan Theory (explaining in simple terms what it actually means) 2️⃣ What is naked K (why do experts believe in it) 3️⃣ If you want to learn in practice (especially for short-term Bitcoin trading), how to learn step by step.

🧘‍♂️ 1. What is Chan Theory (the Zen Master's K-line philosophy)

Chan Zhongshuo Chan, real name Li Biao, was originally a financial genius + philosophical madman. His 'Chan theory' is not ordinary technical analysis, but a philosophical thinking approach to see the movement law of price structure.

In simple terms, it means:

Price does not move randomly; it has a 'breathing' rhythm (rise, fall, consolidation). What you need to do is not guess the direction but listen to its breathing.

📍 Core concept of Chan theory one: Three-stage theory of trend.

Chan theory believes that all market movements consist of three types of trends: 1️⃣ Uptrend (bullish pen) 2️⃣ Downtrend (bearish pen) 3️⃣ Consolidation trend (intermediate range).

No matter if you look at Bitcoin, gold, or A-shares, it is always switching between these three states.

👉 Key concept:

There are no eternal bulls or bears, only the continuation and divergence of trends.

📍 Core concept of Chan theory two: Center (the center of rhythm).

'Center' is the soul of Chan theory. Simple understanding:

A core area of oscillation in a trend. The continuation or reversal of the trend almost always begins with the 'expansion or destruction' of the center.

📈 Example: Bitcoin rises from 58,000 → 64,000 → 61,000 → 66,000, the oscillating range of 61,000~64,000 in the middle is the center.

When the price breaks upward through the center, it is a continuation of the bulls; when the price breaks downward through the center, it is a reversal of the bears.

📍 Core concept of Chan theory three: Divergence (energy exhaustion).

Divergence = 'uneven breathing' within the trend. 👉 Just like when you run out of breath, you need to catch your breath.

Technically refers to:

Price hits new highs, but momentum (volume, strength) does not hit new highs → Upward divergence → It will drop. Price hits new lows, but momentum weakens → Downward divergence → It will rise.

📊 Bitcoin practical example: BTC rises from 60,000 to 68,000, hitting new highs, but the MACD red bars shorten → Typical upward divergence → Prepare for a pullback.

📍 Chan theory summarized in one sentence:

Chan theory is 'using structure to understand price rhythm': see through the three segments of trends, find the center position, capture divergence turning points.

It teaches you not to chase prices up and down but to: ✅ Buy in the direction of the trend when the center breaks ✅ Layout in the opposite direction during divergence ✅ Wait for rhythm in the oscillation zone.

🕯️ Two, What is Naked K (Naked Trading)

Naked K = No indicators, just looking at candlesticks + price structure. It is the ultimate use of 'graphical language', praised by foreign masters like Al Brooks and Lance Beggs.

You can understand it as:

Chan theory is the philosophical version of Naked K, and Naked K is the simplified version of Chan theory.

📊 Three core logic points of Naked K:

1️⃣ Price is the purest information.

All indicators (MACD, RSI) come from price, so 'the price itself' is the truth of the market.

2️⃣ The market is determined by 'high and low point structures.'

* Higher highs + higher lows → Uptrend

* Lower highs + lower lows → Downtrend

* Overlapping highs and lows → Oscillation range.

📈 BTC practical example: If BTC's 15-minute chart continuously shows higher highs and higher lows → Short-term bullish; once a low is broken → The trend may end.

3️⃣ The dense area of transactions is the 'battlefield' of the market.

Naked K traders will mark on the chart:

* Recent price has repeatedly rebounded in the support zone (buying territory).

* Resistance zones that have been repeatedly pressed back (selling territory)

👉 Your operation is: Ambush at the edge of the battlefield, not fight in the middle of the battlefield.

⚙️ Three, How to learn Chan theory + Naked K (step-by-step path).

🪜 Step 1: Understand price language (candlestick phase).

* Familiarize with bullish and bearish candlesticks and shadows (upper shadow = selling pressure, lower shadow = buying pressure).

* See changes in buying and selling emotions.

* Use 1-hour and 4-hour charts to observe BTC trend rhythm.

📌 Tools: TradingView 📌 Goal: To see at a glance 'whether the bulls or bears are strong.'

🪜 Step 2: Naked K practical training.

1. Mark out the structure of highs and lows → Trend direction

2. Outline the price dense area (support and resistance) → Determine turning points.

3. Use candlestick patterns to confirm entry signals → Such as hammer, engulfing, piercing.

📈 Example: BTC forms a bullish engulfing pattern in the support zone → Buy. BTC appears long upper shadow + bearish engulfing pattern in the resistance zone → Sell.

🪜 Step 3: Introduce the Chan theory framework.

1. Draw the trend of price (identify the rising and falling segments)

2. Find the center (the core area where the range fluctuates repeatedly)

3. Determine divergence (energy decay of the trend).

📈 Practical: BTC has three consecutive rising segments in the 4-hour chart, with the third segment's volume diminishing, and MACD red bars shortening → Upward divergence → Short.

🪜 Step 4: Combine Chan theory + Naked K with BTC short-term system (practical template)

Link Operation Logic Explanation

Trend judgment Naked K structure highs and lows trend direction confirmation.

Entry point Chan theory center breakthrough / Divergence reversal to capture rhythm nodes.

Stop loss at the upper/lower boundary of the next center, strictly maintain discipline.

Exit when divergence appears / Candlestick reversal signal, timely take profit.

🔥 Four, Learning Suggestions (from novice to practical)

Phase Learning focus Tools

Week 1 Candlestick language + Bullish and bearish line recognition TradingView to see BTC 1-hour chart.

Week 2 Naked K structure drawing (highs and lows, support and resistance) manual line training.

Week 3 Understanding Chan theory segments and centers, practicing drawing trends from BTC's past movements.

Week 4 Divergence practical + entry and exit strategies combined with real market review.

🌕 Five, The most core sentence summary.

Candlestick is a language, Naked K is grammar, and Chan theory is philosophy.

Once you master them, you no longer predict the market, but listen to the price's breathing and act accordingly.