What is the essence of trading? This question must be understood from the dimension of the cycle.

Look at big to small - this is the core idea. Imagine, suppose you hold 50 million, theoretically you can shake the trends of 1 minute, 3 minutes, and 5 minutes in these small cycles. But the problem is that there are many people in the market at the 50 million level, so the trends in small cycles are actually unstable and basically random walks, relying on this to make money has a terrifyingly low win rate.

Conversely, what if you have 5 billion? Then you can influence larger cycles like the daily and weekly charts. But what does the 5 billion level represent? It represents the volume of institutional funds. And there are only a few large institutional funds in the market, which determines that the trends of larger cycles are relatively fixed, following textbook patterns with few repetitions.

So the logic emerges—first, look at the trend direction from the monthly and weekly charts, find a suitable pullback position to enter, and then operate precisely using smaller timeframes. The smaller timeframes are just a magnifying glass for the larger timeframes. I have studied several trading systems, and the reliable ones all share this underlying logic.