Multi-Timeframe Resonance in Action: Buy point analysis in China A share

 

I've been reading Professor Jiang Tao's book "Investment Psychology" lately. The multi-cycle resonance method he used helped his friend Niu Hai achieve a 20-fold return in a single month. Let's take a look at this strategy. I'll also share how to use the multi-cycle resonance method with two of my own A-share holdings.

These are some notes I wrote. The figure below is the summary of AI. Indicators such as (YUAN-D) should be Professor Jiang Tao’s own and can be ignored for now.

① Large-Scale (Weekly/Daily) → Determine Trend Direction

Pattern: The overall trend must be upward

Bollinger Bands: The candlestick chart must be on the outer edge of the Bollinger Bands (the further out, the stronger)

Moving Average: The outer edge of the MA15 is more effective

Angle: 45° (Upward) → Strongest Trend

Indicator Confirmation: KD and MACD are upward

② Daily Level → Confirm Trend Establishment

SAR Indicator: Supports the upward trend

③ Hourly Level → Medium-Scale Confirmation

YUAN-C: MA1 > MA2 > MA3 > MA4 > MA5 (Bullish Moving Average Alignment)

④ 15-Minute Level → Precise Timing

Observe Trend Cycles: Large-Scale Periods Resist Retracements

Timing: Choose one of three strong intraday moving averages as an exit opportunity

Let's use these factors to analyze two stocks I've been following recently: Huafa Group (600325) and HNA Holdings (600221):

1. The K-line is outside the Bollinger Bands (even better if it's outside the MA15).

Let's first explain the Bollinger Bands indicator (Bollinger Bands):

 K-line close to the upper band (red line): This indicates a strong stock price, typically following the upper band in an uptrend.

 K-line close to the lower band (green line): This indicates a weak stock price, typically following the lower band in a downtrend.

 K-line near the middle band (blue line): This indicates a relatively stable market with no clear trend.

 If the stock price consistently stays near or outside the upper band (red line), this indicates a very strong bullish trend.

 If the stock price stays near or outside the lower band (green line), this indicates a strong bearish trend.

Here red is the outer edge and blue is MA15

The first chart shows Huafa. Based on this indicator, it's currently in a strong phase, showing a 45-degree upward trend.

The second chart shows HNA, which is a bit weak and currently exhibiting a bearish trend.

2. MACD and KDJ Indicators

Let me briefly introduce these two indicators.

KDJ: Detects overbought and oversold conditions and identifies short-term turning points. K: Fast line, D: Slow line, J: Auxiliary line, amplifies fluctuations.

 Crossover Signals:

K-line crosses above D-line → Golden Cross, short-term buy signal.

K-line crosses below D-line → Death Cross, short-term sell signal.

 Value Range:

80 → Overbought zone, possible pullback.

<20 → Oversold zone, possible rebound.

MACD: Determines trend direction, strength, and buy and sell timing.

 Crossover Signals:

DIF crosses above DEA → Golden Cross, buy signal.

DIF crosses below DEA → Death Cross, sell signal.  Bar Changes:

Bar turns from negative to positive → Trend strengthens.

Bar turns from positive to negative → Trend weakens.

 Divergence Signals:

Price hits a new high but DIF/DEA doesn't hit a new high → Top Divergence, likely indicating a downturn.

Price hits a new low but DIF/DEA doesn't hit a new low → Bottom Divergence, likely indicating a rebound.

Huafa's KDJ indicator shows a golden cross, a short-term buy signal.

The MACD histogram is about to turn positive, and the DIF is about to cross above the DEA.

However, both indicators of HNA Group show a sell signal. It seems that the trend of HNA Group has ended. 

3. Daily （SAR）

Since we can't use Professor Jiang Tao's indicator here, we can only look at the SAR (Parabolic SAR).

Red represents an upward trend, green represents a downward trend.

 

The first is Huafa, and the second is HNA. Therefore, both trends are upward.

4. Hourly Chart (MA1>MA2>MA3>MA4>MA5)

Here, Huafa still meets the uptrend requirement of MA1>MA2>MA3>MA4>MA5.

As for HNA, we can see that it no longer meets the requirement, but it did meet the requirement during its previous uptrend (outlined in red): MA1>MA2>MA3>MA4>MA5.

5. 15-minute buy point confirmation

Since we need to confirm a buy point, let's focus solely on Huafa. After all, HNA isn't currently showing a multi-cycle resonant upward trend.

If I were to buy on the right side, I would buy at 5.5.

The moving average convergence also shows a range of 5.5-5.55.

Finally: These data are as of September 19th, the previous trading day of this writing.

We welcome your feedback and suggestions.