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For many years, I have been pondering a question that concerns almost every trader: what does a trend really mean? Standard definitions from reference books have never appealed to me—they are too vague and imprecise.
At one point, I found the answer in the theory of true Yin and true Yang. Everything is crystal clear there: after true Yang begins an upward trend, after true Yin—a downward trend. This is not just philosophy; it’s a quantitative system. Most traders follow an unclear trend without understanding where it actually begins.
When I first heard how this theory was explained in lectures, there was a lot of criticism. People attacked the author, even though they had no financial disputes with him. It’s a strange trait—to criticize without understanding. But if you have real objections, express them constructively. That’s a sign of a serious trader.
The essence is simple: true Yin is a signal for a short position, true Yang—for a long. You just need to hold your position between them and wait. Waiting for the right moment is the key in trading. The trend you catch should be justified, not just following the price. That’s the difference between a professional and an amateur.