Unlock the Secrets of Trading with ChanLun
Note: This website is updated constantly!
Please revisit often.
About ChanLun
ChanLun （缠论, meaning Chan's Theory) is the most comprehensive and precise trading method. It was developed by the late great Chinese trader 缠中说禅（meaning "Zen in the Entanglements"). The first word is pronounced as "chan", and this is what people refer him to.
Unlike traditional methods, ChanLun is built upon the very fact that
any price chart consists of three and only three basic chart types: rise, fall, and range;
the price is always in one of the three chart types;
the current chart type will eventually complete;
once completed, market will transit into one of the other two remaining chart types;
the transition point where the current chart type ends and the new chart type starts offers the best reward/risk.
ChanLun provides traders:
a set of tools and rules for decomposing the charts,
a reliable technique to precisely locate turning points based on nested-divergence,
a roadmap to read the market and plan ahead with "complete classification".
It is clear that ChanLun's foundation is sound and universal. ChanLun works at any market and any timeframe. It is inherently superior to the indicator- or pattern- based traditional methods.
With ChanLun, traders get better entries and exits, find more opportunities / risks. Overall, it empowers traders to make more reliable decisions and achieve greater success.
Paradigm
The NASDAQ chart is marked with ChanLun buy and sell points. Structure-in-Structure pattern was identified in July 2023 which forms nested-divergence. The category one sell point of daily level (D1S) is hence determined, followed by category two sell point of daily level (D2S) in late September. D2S is an excellent sell entry.
Algorithmic Indicators
We provide advanced indicators, some are free and some proprietary ones will command a fee.
Our powerful momentum indicator VAcc (velocity/acceleration) and the Adaptive Moving Average for Swing Trading, have been published on The Technical Analysis of Stocks and Commodities Magazine. They have all been implemented by most trading platforms and charting software. The versions on this website are slightly improved over the published ones.
Three of our advanced proprietary indicators, Bull Bear Line (21 period), Cong Band, and Delta Energy, are shown on the NDX chart below.
Bull Bear Line is a new concept adaptive moving average with focuses on price trendiness. With just one indicator and a single parameter, it combines both the responsiveness of short term MAs and trendiness of long term MAs, functions as bull/bear boundary, serves as a trailing stop similar to Chandelier.
DeltaEnergy gauges the energy strength of the price movement. For price to turn from downtrend to uptrend, this indicator must go through the process of yin weakening-diminishing, yang strengthening-dominating. People can even just trade with this indicator on its own without looking at the price chart.
Cong Band is a new contour band centered around Bull Bear Line. This band embraces the price fluctuations very well. It can be used for entries and exits, particularly for overbought/oversold situations.
And let's not forget
Trading Systems
Our trading systems combine ChanLun structure with proprietary indicators to offer excellent entries with good reward/risk ratio and win rate.
In particular, our efforts are focused on ChanLun's Category Two buy/sell points. They are among the safest and most rewarding locations for trading.