Unveiling the Secrets of Bidding (Mindset Series 7)

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Let’s review the weekly Xi learning exchange comments in the picture above.
Monday afternoon, Western stocks suddenly accelerated, raising concerns that the short-term path and acceleration trend might repeat. Although reluctant, I also need to practice what I preach and gradually unfollow in batches.

At that time, the reason for unfollowing Western stocks was that they started in the afternoon without smooth value in the morning. Based on trading system predictions, it wasn’t that they didn’t move in the morning, but that they were suppressed by bears. Once the bears’ pressure eased, they restarted. So, it’s understood as a weighted rise; normally, weighted is T+ low buy high sell, but it suddenly moved to accelerate and hit the limit-up. Accelerated limit-up seems good to you, but I see it as human greed starting to act. Some blindly chase the rise, and this batch of people are often the last bullish group—greed is the final madness of human nature, forming the last wave of bulls. After hitting the limit-up and breaking the board, I quickly checked its path in the chart below:

In the chart above, we see in one minute that it completed the path and acceleration in a small cycle. So, after the break, unfollowing is the correct choice. The next day, the stock opened flat, and there was still a chance to unfollow, but by the close, it hit the limit-down. Don’t develop emotional attachment to individual stocks. Over these 30 years, besides bank stocks, most small-cap stocks have been involved, especially in low buy-in participation, with high-frequency low buy-in for 25 years. Short-term trading must exit before large funds withdraw, switching to other sectors, which is also a basic requirement of my quantitative system.

Recently, I’ve been guarding against the emergence of leading stocks, afraid of missing out. So, any strong pattern must be watched. However, Hang Electric’s main force tactics troubled me twice, and in the end, I exited with a profit.

Hang Electric went from follow to unfollow. Although it’s not a dragon, being able to exit safely and still have some profit is a preemptive move by the quant system. When opportunities seem to arise, enter first; when risks appear, exit ahead of others. I also added a static high coefficient to give it width, so there’s still a chance to unfollow the next day. Ultimately, on Friday, it dropped 8%, so the sensitivity of the quant system is the strongest. Remember this. Just like you shouldn’t drive after drinking because your sensitivity drops—you see risks two seconds late, and emotions can excite you. If you can’t control your emotions, they will control you, greatly reducing sensitivity. Don’t let rises and falls show in obvious signals before you decide. Someone else might be more ruthless and faster. While you’re still considering whether to cut a finger to stop loss, others might have already broken their arm or even their waist. Some lack skill but have super execution.

Tuesday, the market plunged sharply. I abandoned three stocks, reflecting the sensitivity of my 30-year system, helping avoid losses. But the market’s decline also offered re-entry opportunities, like misjudged stocks. Because of the panic, the entire market was in chaos, which I said is a good time to use the market’s direction to adopt different modes. When the market drops sharply, look for stocks that were wrongly killed by the market’s three axes. Our most outstanding stock this week, Hanlan, appeared here.

The best students already understand the double-break follow rule.

These students are like excellent exam takers who submit their papers early. With a little more time, they might surpass the teacher. They are too strong—independent judgment, decisive follow, thumbs up for them.

Some students are still uncertain. I couldn’t help but send another message during the exam, emphasizing focus and warning about afternoon market risks and the opportunity to follow Hanlan.

Think about it: if our focus remains on Hang Electric and Western stocks, we might miss this opportunity. We unfollow to avoid risks and free up funds. In real trading, the key is to use funds sparingly each time. If you hold five stocks a day, you can say which one is rising, but in real trading, point-to-point learning is crucial. Many have experienced their stocks being trapped while others soar—this is the reason. Without cutting losses, you can’t let go.

Looking back, whether it’s Tiantong, Litong, Zhejiang Wen, Baichuan, or Hang Electric, it’s not about liking their names but about the quantized multi-long/short cycles they trigger, which suit you. Remember, you’re not buying stocks; you’re buying the price changes driven by their multi-long/short cycles.

Meanwhile, on that day’s market plunge, GCL also had a missed order on the board, offering a chance to position.

GCL’s follow success also leveraged the market’s panic decline. Many only want to see market rises happily, but the market can’t rise every day. You must acknowledge the market’s decline and learn to use it—that’s the correct Xi learning direction.

Next, Wednesday to Friday, Hanlan hit three consecutive boards, GCL released T+ and closed the board on Friday. Throughout the week, regardless of market ups and downs or individual stock performance, we can foresee some patterns—this is technical and intuitive. Trust that the same stock, with different multi/short ratios, will have corresponding points in its price pattern. This is something we need to study and optimize collectively.

I see many talented students—unlike me, who took over 20 years to refine. I feel they can learn in just a year. Maybe I can fulfill my four of six dreams this year: cultivating three market giants and three trend masters. You are my motivation and support to realize these dreams together.

This week’s performance is commendable. Next week, let’s continue learning Xi, exchange ideas, and improve together.

Today’s focus is on the seventh article of the Xi learning mind method—the importance of positive and negative scales. Keep working on Xi learning, ask me questions if you don’t understand.

Emotion AcB System (Seven)

Original author: Wildman Brother Published: 2023-09-24

Every time I eat a big noodle, I feel suffocating pain! Then I start reflecting on my trading, reviewing my trade records. Pain once, reflect once; reflect once, improve once. Over 27 years, this accumulates into my own trading system.
So, after mastering the trading system, it’s even more important to cultivate a true heart—achieve unity of knowledge and action.

Today we discuss the eighth indicator of emotion quantification: the positive and negative scales. This knowledge point is very important and ranks first in practical board trading, as shown in the chart:

Before talking about positive and negative scales, let’s discuss the relationship between themes, fundamentals, news, emotions, funds, and opening prices.

We know stocks are lifeless. Their fluctuations are driven by funds’ buying as a push. Funds are also lifeless; their movement is driven by human emotions, which cause buying or selling behaviors. Human emotions often change due to external events—like improving fundamentals making people buy, or sudden good news triggering a rush, or even rumors causing buying, or stock analyst comments influencing emotions, or deep analysis of news. Conversely, bad news can trigger selling emotions.

Among these sources of information, if you base your buy or sell decision on any single point, you’re relying on a single data point. This can mislead investors because when you profit, you think it’s your cognition, but it’s just a point—an isolated part of the whole. Over time, your trading will become confusing, like an unsolvable math problem. Without a wise guide or clearer insight, you’ll be stuck in the middle long-term.

Therefore, I believe that the key to winning in trading is not a single point but a surface. What is a surface? It’s the sum of all points. If each point represents a type of emotion value, then the surface contains all emotion values. Where can this surface be reflected? It’s in the order book.

All investors, during the market’s opening auction from 9:15 to 9:25, make a collective “vote” based on their information: buy or sell. This is a market-wide emotional decision—an actual vote. If buy orders exceed sell orders, the stock opens high; if sell orders exceed buy orders, it opens low. We quantify this as positive scale (high open) and negative scale (low open)—like a balance scale weighing emotions.

This is the entire market’s emotion surface, not just a single point. The positive and negative scales in the opening auction are the result of this surface.

I’ve spent a lot of time guiding everyone to understand and value the positive scale. It’s a surface, representing the entire market’s emotion. It’s no longer just a point that blinds you; all visible and invisible emotions are here. Shouldn’t you pay attention to this market opening? Many students see a stock with bad news still opening high or hitting the limit-up, which they can’t understand; or a stock with good news opening low and falling sharply. That’s because you see only a point, but the opening auction reflects a surface.

Let’s classify the positive and negative scales:

• By auction: positive scale, negative scale
• By daily coefficient: increasing positive scale, decreasing positive scale, increasing negative scale, decreasing negative scale.

Using real cases, we will explain and apply these positive and negative scale indicators.

Note: After the fourth board release, the stock remained high with positive scale until the 11th day, when a negative scale appeared, indicating that from that day onward, the number of bearish investors exceeded bullish ones, and the stock’s movement was driven by the larger side of the scale, leading to a decline. As shown in the chart:

For example, An Tai Group entered the “mass volume” strategy at the second board, opening at a flat limit-up, indicating more bulls than bears. The next day, it hit the limit-up again—correct. The third board opened with a negative scale, showing bears increasing and surpassing bulls, possibly forming an external arc. Indeed, on the fourth day, it opened at a limit-down, confirming the negative scale was correct. The high at the third board was a time-based external arc (bears increased within the limit-up).

Let’s look at what decreasing positive scale means, using Hemei Group as an example:

Note: The chart shows that from the second board onward, the opening positive scale values are 8.94%, 5%, 1.33%. The significance of the auction is that it’s a vote of the entire market’s emotion—buy or sell. The second board’s positive scale is high at 8.94%, indicating strong bullish sentiment. The third board’s positive scale drops to 5%, meaning bullish investors are decreasing as the stock hits new highs. The fourth board’s positive scale is 1.33%, showing that at new highs, bullish investors are significantly reducing, and bearish sentiment is increasing.

This decreasing bullish scale and increasing bearish sentiment form an external arc, similar to a human throwing a shot put—bullish dominance diminishes over time, forming an external arc. The true effective high point is determined by the current majority of bulls. The fourth board’s limit-up with a small four (C=4) and a bullish/bearish ratio of 90/10 indicates the price won’t be affected by bears. But in the external arc, bears are greater than 10, so they can influence the price.

In summary, these three values form a decreasing positive scale. The fifth board cannot be hit; attempting to do so will cause a break. For example, Dongfang Tong’s decreasing positive scale:

Note: The second, third, and fourth boards’ auction positive scales are 10%, 3.53%, 3.31%, showing a decreasing positive scale. The stock keeps hitting new highs, but bullishness diminishes. The highest point isn’t determined by the largest bullish side, so the quantification fails, and hitting the fourth board is unlikely, risking a break.

What about decreasing negative scale? It means that over time, bearish sentiment gradually decreases, forming a bottom arc and generating a buy point. It’s the opposite of decreasing positive scale. One occurs during an uptrend with decreasing bulls, signaling a sell or stop-buy point; the other during a downtrend with decreasing bears, signaling a buy or stop-sell point.

The key belief supporting decreasing negative scale is the market’s auction significance: the market’s overall emotion pricing. For example, using Jin Hua La Bi:

Why choose Jin Hua La Bi? It’s important to find stocks with high recognition under the same market conditions. Whether it’s a continuous board gene or a daily ACB pattern, the strongest form is essential. Don’t look at junk stocks (remember this).

Note: First, confirm the height’s validity. The chart shows a 1+2 pattern—1 is a “liuliu + ling” pattern, indicating the end of a low volume and low price phase; 2 is a four-board ACB pattern, confirming the height’s validity.

If the decline is minor, it will show a negative scale decreasing pattern, as a release phenomenon—over time, bears become smaller. If bears shrink, their influence in the auction diminishes, leading to a lower opening auction, forming a bottom arc.

The stock’s release after forming an ACB confirms the bottom arc and buy point. When the stock hits a new high after release, the entire prediction is validated—this is the correct use of decreasing negative scale.

Thus, positive scale decreasing signals a sell point; negative scale decreasing signals a buy point.

To reinforce memory, let’s take Hangzhou Thermal Power as an example, shown in the chart:

Why find a high recognition stock? Because in this market, the stronger the pattern, the larger the funds involved. Larger funds mean more obvious profit effects. The higher the stock, the more thorough the turnover. It’s about exploiting human weaknesses and leaving the trend’s strength. Don’t use my quant system on junk stocks—it’s a sign of disrespect.

This is a four-board high coefficient daily ACB pattern, indicating more bulls involved. The decline is minor bears. At this point, we rely on experience. If correct, bears will decrease, first reflected in the market’s emotion in the auction. If the auction shows negative scale decreasing, it confirms a release—forming a bottom arc.

The three release coefficients during decline are -10, -5.42, -4.43.

As the decline lessens, it confirms negative scale decreasing. The market’s surface includes all points—known and unknown—independent of prediction. If a buy point appears here, it’s a signal to go long. Negative scale decreasing means bulls are increasing—so it’s a bullish signal. Quantify this system and follow it consistently.

Now, look back at Hanlan: on March 2, it opened 3.6 points lower, indicating many bears. The next day, it opened flat, and all bears disappeared! This shows they released all their positions yesterday. After bears release, you should use double-breaks—break five-day moving average and intraday average—to find buy points. Plus, the market dropped sharply that day, helping clear out the bears. If the market hadn’t fallen, they wouldn’t have exited, and future rises could be affected. The cleaner the exit, the purer the bulls, and the more likely the stock will hit three consecutive boards. Do you understand?

Those who read my articles are like destined friends—cherish this connection!

I am a professional trader with 30 years of short-term trading experience. I’ve experienced the 2007 bull market and the 2015 stock crash. I thank the market for giving me a skill that allows me to support my family. As a man and the pillar of my family, I can shoulder responsibilities through my favorite work—this feels truly good! Over 30 years, my stock age is probably older than many novices’ ages.

If we have tea, I probably won’t communicate much. If I speak, I’ll likely talk about my trading system. Inside, I feel lonely and solitary. By chance, I wondered if I could share my 30-year experience because I understand how tough this market is—99% of people become chives and leave disappointed. Only a tiny fraction succeed. I’m not a teacher, just sharing my system, trying my luck.

Unexpectedly, many fans love my trading system. I thought I invented it myself over 30 years, with terms I created. Fans might not understand. But seeing their enthusiasm grow, I follow along. Recently, I stay up until 1 or 2 a.m., which has become normal. Once I stayed past 3 a.m. to finish a review post, and my wife got angry… (a thousand words omitted about a spicy Sichuan girl).

No choice—my own trading, replying to fans’ posts, writing reviews—time is never enough. I once boasted to her I’d reach the top 10 of Taogu Ba in a year. I have confidence and guts. My biggest worry is that people won’t understand my “Emotion Quantification ACB Trading System.” Now, all short-term strategies focus on themes, leaders, switching, and ice points, but none use my multi-long/short emotion ratio quantification model.

I checked, posts need popularity, tips, likes, cheer coupons, reminder tickets, comments. The higher the combined score, the higher the rank. I have many loyal fans—iron, silver, gold—supporting me. For example, in the 200th issue, I ranked first in the whole network for cheer coupons. Yesterday, I received 103 cheer coupons for a single article—probably top three. Thanks to all supporters. I hope we can always rank first in cheer coupons. Each coupon costs brothers 10 yuan, but what you learn—fishing or fish—probably exceeds that daily coupon. If I’m blunt, on March 3, during the big drop, if you blindly trade and hit a pit, the cost could cover many coupons. Think about it: many gather firewood, the flames rise high. If you like, let my posts burn brightly.

But I suddenly realize many just like free riding, likes are far behind, and I’m really discouraged. I want to rest, but my loyal, silver, and gold fans don’t want me to stop. Still, I’m exhausted and upset.

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I can see who are true loyal fans, silver fans, and gold fans from my backend. If I really get too busy, reply to your posts late or slow, please understand—I might prioritize based on these data. I can tell who wants to learn more, who is grateful (not asking for gratitude, but I am grateful to meet you). Those who understand gratitude are less weak, more suitable for learning Xi.

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Some only ask questions without supporting popularity (see below). I can still answer them now, but later, when busy, please understand—I might not be able to reply promptly.

Also, free riders who don’t even like—this is excessive. For example, this fan just now understands why a video with hundreds of thousands of views has fewer than 300 likes. How can my popularity rise? Meeting is fate. If you really eat noodles and feel bad, liking costs nothing. Knowledge should be paid for, I understand. Maybe due to poor market sentiment, mood is bad, but these likes are within reach.

Again, meeting is fate. From my perspective, I hope my creations achieve good results. Of course, whether it’s worth it depends on your evaluation—tips, cheer coupons, reminder tickets, comments, likes, or a combination—it’s all up to you. Whether I take a break or not depends on me. If I get more supporters and questions, I might not keep up. I still reply seriously to every post, but next week, with more loyal fans and questions, I might fall behind. That’s possible. My original intention is to share my 30-year experience to help others avoid detours. If everyone works together to make me popular, I will keep creating and sharing motivation.

Next, let’s review the consecutive boards—are there opportunities or important sectors?

Among 8 consecutive boards, Hanlan’s attention has reached three boards. On Friday, the auction price was below Thursday’s, and Saturday might see a fourth board, but with the external market plunging, a fourth board is unlikely. No dynamic value will be generated. Consider reducing follow or unfollow. Its attention might shift from C small 4 to C=4 at the close or C greater for low buy-in.

Only one stock, Zhuolang Intelligence, as shown below, can potentially surpass 4.40 tomorrow, requiring dynamic value confirmation. Plus, the volume must not be too high—less than the turnover of 20.70% on the day it hit 4.40—to be watchable. But it’s difficult because of the external market drop, many stocks’ dynamic values will disappear. At this time, the probability of using the “three axes” miskill mode is high. Consider observing the end of the day for opportunities. Other stocks look weaker. Don’t force it—just watch the dynamic value. Don’t add your emotions prematurely; pre-judging is harmful.

Other stocks’ performance:
1. Yunnan Energy Control hit a new high last Friday with a “liuliu + ling” pattern, possibly attracting dragon-level attention. But I can’t confirm if it will retest. So, I rely on dynamic values, using the highest coefficient 9010. If not met, better to miss than make mistakes—keep the K-line steady. Aim for a lone wolf spirit: don’t follow easily; follow only when successful.

2. Kechuan Technology, seemingly down 3+2+1, has formed 1+2+3 in the daily ACBC2 pattern, but final confirmation depends on the 4-cycle intraday dynamic value.

Note: Sometimes, prediction has zero value; confirmation must rely on intraday dynamic values.

My personal opinion, for reference only, for exchange only, not investment advice. Operate at your own risk.

Today’s Xi learning ends here. These are my personal views, for reference only.

In the world of emotions, you must not have your own emotions—only right or wrong! You need to have that “God’s eye,” to see the whole picture!

Learn to have a correct emotion game system + learn to control “my heart demon.” I’ve shared both methods—my 30-year original practical experience. I hope those who see this cherish it!

Whether you like first then like, or like then see, remember to click like!

Yesterday’s post remains, becoming a featured post, increasing its popularity. @123Keer @AoyouHong @ElvisChi @HuicaiBuchaoshi @TangJiaSanShao @Kendirck @YuShengYao @TY003 @AJianHongHongHong @ZhusiMaji @GuHaiChenSi @HuangHuaiDaDi @GengHaiQing @CaGenZhiXiangNiXie @YingJie @XingLan @Sxtcj @XiGeZhangFengLe @ErYiJiuJiu @XiaoNiuXXX @HaiDongQing1968 @BianzhaoChao @YanKunChaoGu @GuReedShen @ChaoXiangGaiMing @Berber @MaoBaiMaoMi @ZhiQitianSheng @XiaoXiaoBuErJie @NianShaoFengHuang @MuKeXueDeChaoDianMoPao @ShenzhenLongGangDaDao @ZiYing @DongChuanDaiRong @AiHeKeLeJiaBi @Scaryy @CCZ1589 @MoWuDao @YuanYe888 @HengYou @Yhaaaa @GuHaiFuChenJun @TianTianZhuanShao @WoWeiNvShenLai

Thank you all for giving the article popularity. Your support is my motivation to keep updating. My Gold Fan team continues to support me. I also see many new faces sending cheer coupons. Thanks for your support, and I wish everyone can soon get your “Sunflower Manual.” If you like my “Sunflower Manual,” I will stay online to teach Xi for a long time.

Today, I received 45 cheer coupons. Every time I organize the tips and cheer coupon list, I remember the names. Maybe next year, we can meet offline at Taogu Ba, toast and chat. When you mention your name, I’ll know who you are—definitely not drunk.

Thanks for your recognition. Only sincerity in this world is irreplaceable! My wish is to have students all over the world.