There are really people who know Yin Yang, Bagua, Feng Shui, Zhouyi, and so on Found a large tomb in the foothills of Northwest China And then quietly become an antique tycoon It's not that these things are so divine But these theories have been fully transmitted from ancient times to modern times These theories were also used in ancient times for selecting land and building tombs So directional deduction can really deduce things The same goes for transactions The classic trading theory does not necessarily mean that mastering it will lead to making money But when you discover investment targets that are being operated using these theories or in reverse Disassembling can make money The framework of 7 classic trading theories Are you interested in researching it yourself one ️⃣ Dow Theory There are three trends in the market: ▫️ Main trends (over 1 year) ▫️ Secondary trend (weeks to months) ▫️ Short term fluctuations (days to weeks) The six principles: trend includes everything, index mutual confirmation, trading volume confirms trend, and trend exists until reversal. Established the foundation of modern technological analysis and emphasized the importance of "following the trend" two ️⃣ Elliott Wave Theory Market movements are a reflection of psychological cycles Basic mode: ▫️ Upward trend: 5 waves of increase+3 waves of correction ▫️ Downward trend: 5 waves of decline+3 waves of rebound Nested waves with fractal structure Commonly used for deducing large cycle trends, but highly subjective. three ️⃣ Gann Theory Pay attention to the geometric ratio between time and price. Tools: Gann angle line, price ratio, time period. Classic viewpoint: "When price and time are squared, the market is most likely to reverse Proficient in predicting turning points, but with a steep learning curve. four ️⃣ Fibonacci Trading Theory Based on the golden ratio sequence (0.382/0.618/1.618...). Application: ▫️ Retracement level: support/resistance ▫️ Expansion Position: Target Price/Take Profit Simple and intuitive, often used in conjunction with trend lines and shapes. five ️⃣ Wyckoff's Market Structure Theory Market cycle four stages: ▫️ Accumulation ▫️ Boosting (Markus) ▫️ Distribution ▫️ Decline (Markdown) Pay attention to the coordination between trading volume and price, and identify the intentions of market makers/large funds. Understand the behavior of the main force and capture the starting point of the trend. six ️⃣ Chaos&Fractal Theory The market is a nonlinear complex system, and prices exhibit self similar fractals. Tools: Fractal indicator, AO oscillation indicator. Used to capture local turning points, combined with trend trading systems. seven ️⃣ Random Walk Theory Assuming that market price changes are random. Viewpoint: Unable to predict the future → Index funds are better than active trading. Completely opposed to technical analysis, it represents the academic school. Classify it Trendsetters: Dow, Eliot, Gann, Fibonacci Main faction: Wyckoff Mathematical school: Gann, fractal Random Walk: Random Walk Some of these theories corroborate each other Some are in opposition to each other True experts often have the ability to integrate across different genres Find a suitable trading framework for yourself