The central is the core tool of the Chanquan theory technical analysis, its construction and determination must strictly follow the original logic.
(1) Three Elements of Central Construction: ① Three consecutive lower level trend types, forming the minimum unit of the central, direction must alternate (up down up / down up down); ② Overlapping Interval Calculation, the overlapping area of the high point minimum value (ZG) and the low point maximum value (ZD) of the first three segments of lower level trends; ③ Direction Determination, an upward central starts from a downward segment, a downward central starts from an upward segment.
(2) Central Level Determination: ① The central level is constituted by three segments of the lower level trend (e.g., a 30-minute central level is made up of 5-minute segments); ② Level recursion, the lower level central extends nine segments and automatically upgrades to a higher level (e.g., a 5-minute nine-segment extension becomes a 30-minute central); ③ Practical verification, higher level central has stronger attraction, and must confirm the validity of the breakout with three buy/sell points.
(3) Trend Type Relationships: ① Trend Determination, includes two non-overlapping same-direction centrals (e.g., an upward trend on the daily line requires two independent 30-minute centrals); ② Consolidation Definition, contains only one central and has not appeared three buy/sell points; ③ Operational Benchmark, the central level determines the operational cycle (e.g., a 30-minute central corresponds to daily line segment trading).
This article is only for academic exchange of Chanquan theory, and should not be used as an operational basis; the market has risks, and decisions must be independently judged.