Teaching you to understand the essence of internal and external forces in the market

Teach You to Understand the Essence of Market Internal and External Forces [Tao Gu Ba]

Many people incur losses because they cannot see through the essence of the market.
Today, I will discuss a key understanding: the relationship between external and internal forces!
External forces cannot change the existing trend of the market (internal forces), but they can accelerate the evolution of that trend (internal forces)!
In a strong upward long cycle, regardless of how much the external market drops, it will open low and rise high;
In a weak downward long cycle, no matter what positive news comes out, it will open high and drop low.
The essence is to understand the state of the market itself; the positive and negative news that you see is visible to everyone, and it has nothing to do with whether you can make money in the market.

So do you often encounter this situation?
In a one-sided decline or weak market, even when good news comes out, many times the market still opens high and drops low;
While in a market that is generally rising, with a continuous profit-making effect, even if the external market drops significantly and negative news continues, the market often opens low and rises high.

There are too many historical examples of this, so I won’t list them one by one.
Let’s take the current market situation this week and do a simple analysis accordingly!

From last Friday, which was March 20, the index closed directly below the 4000-point lower support.
This drop has already disproven the effectiveness of the 4000-point support and the expectation that the market is still operating at the lower edge of the large structural fluctuation box.

Thus, the funds whose own holding logic has been disproven will naturally form a consistent behavior to cash out the next day, which is March 23, Monday! This will lead to further declines in the market!
Currently, the market has very strong negative feedback and lacks any continuous profit-making effect. From the perspective of market internal forces (potential), the market is inherently weak, and the downward continuation on Monday was already a clear signal.

As for external forces—the escalation of the U.S.-Middle East conflict triggered a global market drop, this pessimistic sentiment will further impact the A-shares.
Under the influence of external forces (negative news from abroad), it ultimately accelerated the internal forces (potential) that were already heading downward.
This ultimately led the A-shares to drop directly to 3800 points!

At this position, the index itself is an M-top structure.
I had previously predicted: after the index briefly tests the monthly-level strong support and stabilizes for two days, it would still test down to 3800 again.
However, on Monday, being interfered with by external forces! This directly caused the internal forces to accelerate! It omitted the process of stabilizing for 2 days! Ultimately, the index dropped straight to the target, which, from a certain perspective, is actually a good thing!

On a side note! As for how the 3800 point came about?
The market’s chartist funds account for at least over 50-60%, and one structure they recognize is the M-top.
The real space of this M box is 200 points:
High point 4197, low point 4102, with an actual drop of about 200 points.
According to the M-top technical structure, after breaking the neck line, it usually drops another real space.
4000 minus 200 points, the target is exactly 3800 points.

Next, let’s analyze Tuesday’s market from the perspective of internal and external forces.

On that day, my thoughts to everyone were very clear: it was to make a kick.
Before the market opened that day, the predicted rhythm was: first open high, then drop directly low, and then be supported by funds, finally pull back to repair.

This judgment is based on an analysis from the perspective of market internal and external forces!
The core is still that sentence: external forces can only accelerate trends, they cannot change the original trend of the market.

The market’s internal forces (potential) at that time were very clear:
After three continuous drops, the market inherently had a strong expectation of repair.

Here, everyone remember a key point:
In different environments! After 1 drop and 3 drops, the next day is likely to be a repair day.
Some retail investors might argue: last year there were 4 drops and 5 drops?
I’ll emphasize again: stocks are a probability game, do not use low-probability events to deny high-probability rules!

So that day, using the logic of internal and external forces, the reasoning became very clear:
External positive news stimulation caused A-shares to open high; but the short-selling pressure was also clear—panic funds from the previous day rushed to sell, compounded by the external market’s overall high open and low close drag.

However, the market’s internal force, after three consecutive drops, inherently had a very strong expectation of repair.
Thus, the post-opening decline would likely be supported by funds, ultimately pulling back again under the guidance of internal forces to complete the repair.

So think about it~ Similarly, the conflict situation in the Middle East is still escalating this weekend.
Can we not predict the market for next week based on the strong internal force performance of the market last week, how it will behave under the impact of external forces?

To those who agree, please help with likes, support tickets, and rewards all in one go~
Thank you all for your continuous support! Wishing everyone a smooth journey after the holiday, with accounts soaring higher and higher! 🎉