Many new traders rush to study various indicators, but the truth is that learning 100 indicators is not as beneficial as mastering these three key selling points. Many people say that the conversion points in Chuan Theory are too complex, leading to the voices claiming that Chuan Theory is useless. However, the truth is that Chuan Theory is not useless; rather, it is that you have used the wrong entry point. Chuan Theory is like a trading system that emphasizes both rhythm and structure; using it is akin to playing Go, where the focus is on the initiative, response, and strategies between rounds. The game is like life, where wins and losses lie in the smallest details. True experts often foresee the changes ten steps ahead before making a move. In trading, what we truly need to learn is how to make your first move at the crucial moment, making a move without regret, seizing the opportunity. Today, we will thoroughly explain their underlying logic: buying once, twice, and thrice—how to identify, how to use, and how to secure your winning advantage. Our study of Chuan Theory ultimately aims to understand two questions: when to buy and when to sell. The first, second, and third buying points are the core focal points of the entire Chuan Theory system. Learning Chuan Theory is not about outlining structures but about grasping the buying and selling points accurately to have a winning edge. Therefore, the focus is not on how much you learn but on whether you can apply the first, second, and third selling points at your operational level, ensuring precise point control. Next, let's clarify the most fundamental definitions. The first type of buying point is triggered by divergence, indicating a depletion of momentum and signaling a potential reversal. The second type of buying point occurs when a pullback does not break previous highs or lows, representing a re-entry opportunity for trend confirmation. The third type of buying point occurs when prices break out of the center and then retrace but do not re-enter the center, indicating that momentum has built up, leading to a third buy. Of course, there are some special situations regarding buying and selling points in Chuan Theory. For instance, can a second buying point break the previous highs or lows? The answer is yes, but with conditions; the key is that it cannot break the center. For example, if the second buying point breaks the first buying point, it is entirely possible, typically forming a consolidation divergence. The condition for the second buy is that after the first buy, the price retraces but does not break the low of the first buy. When a bottom divergence appears, it constitutes a second buy. Additionally, there is a variant of the second buy where the position can be slightly higher or lower than the standard second buy, but similarly, the prerequisite is that it cannot break the center structure. In Chuan Theory, the first, second, and third buys represent three different phases of buying opportunities. Mastering them is equivalent to seizing three chances in the market. The first buy serves as a stabilizing starting point, lurking against the trend. The first buy typically appears after a significant decline during the first rebound, representing a contrarian position. At this time, the price breaks below the previous low and quickly rebounds, showing a divergence signal. Simultaneously, MACD bottom divergence and volume-price divergence appear, forming an upward attack. The key is the bottom divergence coupled with the first rebound and additional small-scale confirmation. The practical focus is that stop-loss should be close, and the position should be light, as it is a tentative bottom-fishing opportunity. The core logic is that there is a possibility of a significant downtrend ending, followed by MACD's red bar divergence and volume-price divergence. Then, a key K-line appears, such as a dragonfly line or strong engulfing, along with a very strong lower shadow. Afterward, the first pullback does not break the previous low, and the bottom divergence is established, which equals a first buy opportunity. The identification points include an obvious divergence in the previous decline, the shortening of MACD red bars, and prices making new lows but with insufficient momentum. After the divergence, an upward move forms the first rebound. The rebound retraction does not create new lows, indicating a bottom divergence. The entry technique is to buy when the bottom divergence is confirmed on the left side and set the stop-loss at the previous low or below the lowest point of the bottom divergence. Caution: the establishment of divergence does not mean immediate entry; the first buy is confirmed after the first pullback, and blind bottom-fishing can easily lead to losses. The second buy is for confirming the pullback and low absorption. The second buy is a pullback during the continuation of the trend and is one of the most important buying points in Chuan Theory. It appears after the market breaks the center for the first time and forms a new secondary center or stabilizes near the upper edge of the previous center. The key is not to break the previous center during the pullback for confirmation. The practical focus is that the position can be heavier compared to the first buy, as it marks the starting point of the main upward wave. The stop-loss is set at the lower edge of the center or the low point of the confirmation line. After the price stabilizes within the center, it breaks upward from the first pullback at the upper edge of the center, forming a second buy. The core logic is that the center structure is completed, and upward breakthroughs during pullbacks confirm support. A bottom divergence indicates a second buy opportunity. The identification points are: the emergence of an obvious center, with at least three lines properly leaving the center and then pulling back without breaking the lower edge of the center. During the pullback, the trading volume decreases, and a stop-loss K-line and divergence form. The entry technique is to buy after confirming the stop-loss divergence on the pullback, with the stop-loss set near the lower edge of the center or below the K-line's entity low point. The advantage is a high success rate with low risk, suitable for most people's practical operations. The third buy serves as an acceleration point in a strong trend. It occurs during a trend that has already been established and after consecutive breakthroughs of high points, typically accompanied by reduced volume and MACD's golden cross or other indicators assisting in judgment. The focus is on the new high not breaking during the pullback, with a small retracement followed by another rise. The practical focus is that it is suitable for strong chasing. The scenario is that a major trend has started, with a new attack point after a small-scale pullback. The core logic is that the main trend is clearly upward, and then a small-scale pullback forms a new center or stabilization without breaking previous lows, resulting in a bottom divergence, which equals a third buy opportunity. The identification points are that it is currently in a clearly rising structure with three segments or more, where the pullback forms a secondary center or small adjustment, and MACD's red bars shorten and then expand or show consolidation divergence. A small bottom divergence appears on the right side. The entry technique is to chase in when the small bottom divergence breaks out, entering in the direction of the trend, with the stop-loss set at the lower edge of the small center or below the previous low. The appropriate scenario is during a strong trending upward wave; the third buy point is an excellent opportunity for continuous position building. Looking at selling points, the structure of selling points is basically symmetrical. The first, second, and third selling points correspond to the top divergence, trend failure during the pullback, and accelerated topping, respectively; the principles are the same. The reverse application of the first, second, and third types of selling points: the meaning of the first sell is the first rebound failure after the top divergence, with the application scenario being a prelude to a decline, focusing on profit-taking. The meaning of the second sell is breaking down through the center, confirming failure on the retracement, with the application scenario being a structural short signal. The meaning of the third sell is a small rebound followed by another decline, representing an opportunity to short in the downward trend. In addition to mastering the basic concepts of the first, second, and third types of buying and selling points, we often encounter various mixed special situations in the real market. Therefore, I have also organized some subdivisions of the first, second, and third types of buying and selling points, along with a practical mnemonic for converting buying and selling points to help everyone apply them flexibly in practice. The mnemonic for converting buying and selling points is as follows: 1. Find a sell above the center; 1. sell can convert to 3 sells; 2. Find a buy above the center; 3 buys can convert to 1 and 2 buys; 3. Find a buy below the center; 1 buy can convert to 3 sells; 4. Find a sell below the center; 3 sells can convert to 1 and 2 buys. After mastering the theory of buying and selling points, the next step is practical application. During my learning and practical experience with Chuan Theory, I encountered several difficulties. Next, I will summarize some common practical issues, as well as the solutions I have personally found, and share them with everyone in the hope that they can provide some references and insights for your practice of Chuan Theory. The practical difficulties are: the original text of Chuan Theory emphasizes that without divergence, there are no buying and selling points. This expression actually signifies the end of standard trend types, where divergence is typically required. However, the formation of buying and selling points can occur through various structural methods; thus, not all segments and the first, second, and third buying and selling points will exhibit divergence. Therefore, when we encounter such situations, we need to handle them in three ways: 1. Trend-ending buying and selling points usually require divergence. You can boldly build positions based on divergence. 2. Consolidation divergence buying and selling points do not necessarily have divergence; operate based on the center and overlapping structures. 3. Strong trends in the direction of buying and selling points usually have no divergence; enter in the direction of the trend and set appropriate stop-loss. The specific handling methods are: 1. Determine whether it is a continuation segment within a strong trend; continuation segments without divergence signal the end, but the next segment continues the original trend. 2. Use center oscillation to find buying and selling points. In the absence of divergence, if the segment forms a new center consolidation structure, you can use the center oscillation theory: sell at the upper edge of the center, buy at the lower edge, sell at the upper edge during a decline, and buy at the lower edge during an increase. This method is not a divergence type buying and selling point but a center structure buying point. 3. Conduct multi-level confirmation, which is very crucial because Chuan Theory emphasizes level confirmation. If one level has no divergence, you can observe whether the next lower level has divergence. Summarized: First, segments ending with divergence are standard buying and selling points; act decisively. Second, segments ending without divergence should be approached with caution, waiting for the next segment to confirm before entering in the direction of the trend. Third, segments ending without divergence but entering a consolidation center should be approached cautiously. 4. High levels without divergence, and low levels with divergence, should be approached with incremental testing signals. If truly uncertain, wait and observe. Because there is a saying: the apprentice buys, the master sells, and the master remains in cash. When there are no relatively certain high-quality opportunities, waiting is also a form of profit. Chuan Theory is a rigorous and complete market analysis system that precisely depicts the rhythm of the market through structures such as divergence, lines, segments, and centers. It constructs clear trading logic with the first, second, and third types of buying and selling points. The first type of buying point captures trend reversals, usually accompanied by divergence, presenting both risks and opportunities. The second type of buying point confirms the continuation of a new trend and is an important entry point for stability. The third type of buying point indicates the end of consolidation and the establishment of a trend, representing ideal entry points for directional trading. MACD, as an auxiliary tool, provides quantitative evidence for buying and selling points. Chuan Theory is not only a technical system but also a trading philosophy that emphasizes level awareness and the application of range-bound strategies, advocating a global approach with attention to detail. More importantly, it reminds traders to cultivate their mindset, adhere to discipline, and patiently wait for standard buying and selling points, which is the fundamental basis for long-term profitability. As Chuan said, "Logic leads to enlightenment; matters require gradual improvement." Mastery of Chuan Theory relies on practical accumulation and the sharpening of one's mindset. Market opportunities are infinite; missing them does not entail regret; the key is to wait for the right moment to act. The first type of buying point captures reversals, the second type of buying point stabilizes confirmation, and the third type of buying point acts in the direction of the trend. True opportunities never rely on guessing but rather on waiting for a structurally complete and rhythmically aligned buying point. As Chuan Master said, "If you miss it, you miss it; there will be countless opportunities ahead. Do not rush; the market is always there. The important thing is whether you can understand it, keep up with it, and grasp the rhythm of the market.