Chande Theory Trading Model Diagram

## Entry Conditions

1. Divergence or increased volume conditions

- Trend divergence or consolidation divergence in the first 30 minutes

or

- 30 minutes no divergence but accompanied by a significant release in trading volume

2. Major Bollinger Band (Optional)

- Major level 1 buy/sell position breaks below the Bollinger Band lower limit

3. Major Signal

- 4-hour level shows buy/sell point 1 (`1:` indicator)

4. Buy/sell points at this level

- 30-minute level shows buy/sell point 2 (`2:` indicator)

- Note: Buy/sell point 2 must not be lower than the internal measurement extreme resonance point, otherwise the trend may easily fail

5. Confirmation from a lower level

- 5-minute level shows buy/sell point 2 (`3:` indicator)

6. Pattern Confirmation

- This level (30 minutes) shows a bottom divergence

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## Exit Conditions

When entering, evaluate the target space based on external measurements; exit if any of the following conditions are triggered:

- Increased volume + 5-minute sell signal 2

- Divergence in trend + 5-minute sell signal 2

- No divergence in trend + 30-minute sell signal 2

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## Stop Loss Strategy

Choose one of the following methods based on position size:

1. Strict stop loss (suitable for heavy positions)

- Directly stop loss at buy/sell point 2 at this level

2. Loose stop loss (suitable for light positions)

- Internal calculation resonance point stop loss

- Internal calculation extreme resonance point stop loss

Note: Loose stop losses can prevent frequent stop-outs, especially when the trend briefly breaks buy/sell point 2 and then quickly rebounds.

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