Effective Techniques Summary
Cultural Note: The original Chinese title is 门主的有效技术汇总 (Mén zhǔ de yǒuxiào jìshù huìzǒng), meaning “The Gate Master’s effective techniques compilation.” This chapter catalogs the practical techniques that actually work — stripped of noise, tested in battle.
From this day forward, I will begin cataloging my effective techniques.
Item One: The Nearly Invincible 5-Day Moving Average
In my recently published Drifting with the Wind and Linglong Decision, I emphasized the position of moving averages in the trading domain.
But if these four moving averages were further condensed, leaving only one — I would keep the 5-day moving average.
Because in all markets, every upward push is necessarily powered by the 5MA of some timeframe.
Why the 5MA?
Markets exist with 10-second and 1-minute 5MAs repeatedly advancing, causing larger timeframes to not yet be in the propulsion’s intermediate phase.
But whenever propulsion occurs, it inevitably follows the 5MA of some timeframe forward.
This is fundamentally caused by human attention deficit.
The average individual’s attention span typically cannot simultaneously cover more than seven units.
Nearly half of people in any group have attention levels below this average.
This means: people can recognize “three people forming a tiger” (三人成虎 — a proverb about how repeated claims create belief), but cannot resist “five people forming a trend” (五人成势).
If three people deceive you, you might detect it. But at five or more, you lose both the ability and the will to resist.
Therefore, operators only need to exploit this physiological defect of the crowd — running product prices at the minimum standard — to guide people across all timeframes with the smallest cost.
Three Verification Methods
Knowing this, plus some observational techniques, you can continuously judge whether propulsion momentum exists in the market.
(I always color this line yellow, hinting to myself that this is the gold line.)
1. Current Gold vs. Current Close (本黄与本收) The most direct method: check whether each timeframe’s 5MA is being maintained by the closing price. If the close consistently walks along the 5MA, with highs and lows piercing but the close never breaking it — there is propulsion.
2. Sub-Green vs. Gold Gap (次绿与黄间) After price stretches and reverses, breaking the gold line — how to determine whether it will immediately reverse-pressure the same-level gold line?
Answer: Before the sub-timeframe’s gold-green reverse space disappears, there still exist conditions for upward push.
(Example with upward reversal:) Sub-timeframe 5MA and 20MA, after death-cross and before re-gold-cross, can all potentially pressure the current-level gold line to reverse. Otherwise, it is definitely NOT the current level’s gold line.
By extension: sub-timeframe gold-green death-cross then reversal gold-cross propulsion =必然 is a higher-level propulsion.
3. Sunk Volume and Deviation (沉量与背离) Find the timeframe with 5MA propulsion. The volume-price relationship of its sub-timeframe directly expresses the health of the propulsion cycle. The repeated deviation timing of this sub-timeframe determines the age and lifespan of the propulsion cycle.
These three methods, applied simultaneously across multiple timeframes, allow you to find propulsion momentum that is currently active.
Item Two: Propulsion Momentum’s Unique Authority
Small-level propulsion can resonate with large levels, and is indeed part of large levels.
But during its dominant propulsion phase, it is itself. Only when its energy is exhausted, eliminated, or taken over by a higher level does it cease being itself.
Simply put: the central government is the central government, local is local. Though central contains local and local belongs to central — each locality is a different locality. Province A is Province A, Province B is Province B, City C is City C, City D is City D. The same policy will always have completely different implementation methods and reaction results.
This chapter catalogs the master’s verified technical methods. The original Chinese text continues with additional technique items.
Original Chinese version: 门主的有效技术汇总 →