Introduction to the Coin Circle Chande Theory: From Basic Concepts to Accurate Buy and Sell Points

Basic Concepts

- Fractal: A top fractal refers to a situation where the high of the second K-line is the highest among three adjacent K-lines, and the low is also the highest, with the highest point being the top; a bottom fractal refers to a situation where the high of the second K-line is the lowest among three adjacent K-lines, and the low is also the lowest, with the lowest point being the bottom.

- Segment: A segment is formed by taking two adjacent top fractals and bottom fractals, with at least one non-shared K-line in between, creating an upward segment and a downward segment.

- Line Segment: Composed of an odd number of segments, at least three segments, and the first three segments must have overlapping parts, divided into upward line segments and downward line segments.

- Central Area: In a certain level of trend type, the part that is overlapped by at least three consecutive sub-level trend types. In an upward trend, it examines the sub-level of "down-up-down"; in a downward trend, it examines the sub-level of "up-down-up".

- Divergence: In a certain level of trend, the latter segment is weaker than the previous segment, thus forming divergence.

Buy and Sell Points

- First Type of Buy and Sell Point: Occurs after trend divergence.

- Second Type of Buy and Sell Point: Occurs during the first return to the central area after a trend reversal, without making a new high or low.

- Third Type of Buy and Sell Point: Occurs when leaving the central area, and the subsequent pullback does not return to the range of the central area.