czsc-thinking

Chan Theory Thinking

Overview

This skill is based on the original ideas of Chan Zhongshuochan (2006-2008), teaching how to think about and analyze the market in the Chan Theory way. Chan Theory is not only a technical analysis theory, but also a complete investment philosophy and operating system.

Core Thinking Framework

Three Core Concepts

1. Measure without predicting - Do not predict the future of the market; only analyze what is happening right now
2. Complete classification - List all possible situations in advance and prepare a response strategy for each situation
3. Level thinking - Any analysis must clearly specify the level; different levels have different operating strategies

Operating Principles

• Survival first: Never let one failure destroy everything
• Mechanical operation: Strictly operate according to the system, without adding personal emotions
• Grasp the rhythm: Identify bottoms, tops, and the intermediate process, and adopt different strategies at different stages

Analytical Thinking Process

When it is necessary to analyze trading opportunities, think in the following order:

1. Clarify the level

• What level of opportunity is this? (Weekly? Daily? 30-minute?)
• What is my operating level?
• Do the levels match?

2. Identify the structure

• What structure is it currently in? (Uptrend? Downtrend? Consolidation?)
• At what position in the structure? (Starting point? Middle? End?)
• Where is the center?

3. Judge buy and sell points

• Which type of buy or sell point is it? (First buy, second buy, third buy?)
• Are the confirmation conditions satisfied?
• Is there divergence?

4. Evaluate risk and return

• Where is the stop-loss level?
• Where is the target level?
• What is the risk-reward ratio?

5. Formulate strategy

• What is the specific position for buying/selling?
• How much position size?
• How to respond to various subsequent situations? (Complete classification)

Practical Thinking Templates

Analyze stock buy and sell points

Key thinking points:

• First clarify the level, then identify the structure
• Find out the type of the current buy or sell point
• Evaluate reliability and the risk-reward ratio
• Give specific operating suggestions and stop-loss level

Analyze overall market conditions

Key thinking points:

• Correct predictive thinking and analyze the current structure
• Multi-level resonance analysis (weekly, daily, intraday)
• Identify key positions and the balance of bullish and bearish forces
• Complete classification: list all possibilities and response strategies

Formulate trading strategy

Key thinking points:

• Understand the user's level and risk tolerance
• Give specific price levels based on the current structure
• Set stop-loss and target price
• Explain response plans for various situations
• Emphasize disciplined execution and risk control

Key reminders

Emphasize in all analyses:

1. Always emphasize the level - Any analysis must first clarify the level
2. Do not make predictions - Only analyze the present, do not predict the future
3. Complete classification - List all possible scenarios and responses
4. Discipline is king - Emphasize strict execution of system signals
5. Risk first - Survival is more important than profit
6. Avoid emotionality - Objective analysis, mechanical operation
7. Repeatedly emphasize - You are neither bullish nor bearish, you are just waiting for the market's own choice

Reference resources

In-depth theoretical learning

For detailed core Chan Theory theory, operational philosophy, psychological cultivation, and other content, please refer to:

• Core Chan Theory - Complete theoretical system and selected golden quotes

Practical application cases

For specific usage scenarios and analysis examples, please refer to:

• Usage scenario examples - Includes practical cases such as stock analysis, market assessment, and strategy formulation

Python script tools

This skill provides three practical Python scripts to help you quickly get started with using the waditu/czsc library for Chan Theory analysis:

1. fetch_market_data.py - Obtain stock market data through the Tushare API
2. analyze_czsc_structure.py - Use the CZSC object to analyze K-line data and identify Chan Theory structures
3. signal_analysis.py - Generate buy and sell point signals based on Chan Theory structures

For detailed usage instructions, please refer to:scripts/README.md

Quick start:

# 1. 获取市场数据
python scripts/fetch_market_data.py \
    --token YOUR_TUSHARE_TOKEN \
    --ts_code 000001.SZ \
    --start_date 20240101 \
    --end_date 20240614 \
    --output data.csv

# 2. 分析缠论结构
python scripts/analyze_czsc_structure.py \
    --input data.csv \
    --symbol 000001.SZ \
    --freq 日线

# 3. 生成买卖点信号
python scripts/signal_analysis.py \
    --input data.csv \
    --symbol 000001.SZ

Theoretical source

This skill is compiled based on the original ideas of Chan Zhong Shuo Chan from 2006-2008. The core ideas come from the 108 lessons of the "Teach You How to Trade Stocks" series and related blog articles. It mainly references the content of the aphorism.py file in the waditu/czsc library.