This trading philosophy is a cyclical resonance trading concept, and it is also a concept of looking big and acting small. The foundation of this concept is the N-shaped trend of Dow Theory, combined with the trading logic of different size cycles.

Today, let's briefly discuss Dow Theory, and then I will explain what it means to follow the major trend, go against the medium trend, and follow the minor trend. At the end of the article, I will summarize the details of this trading philosophy, which you can use as a reference for your own trading system.

First, let's talk about the basic concepts of Dow Theory, which mainly have two aspects.

The first is the pattern of the trend, with continuously rising peaks and troughs representing an upward trend, and continuously falling peaks and troughs representing a downward trend. This pattern is what we often refer to as the N-shape.

The second is the cycle of the trend. In Dow Theory, trends are divided into different cycles, simply divided into long-term trends, medium-term trends, and short-term trends.

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On the left side of the chart is a 15-minute candlestick chart, which is the basic trend pattern of the upward trend according to Dow Theory, with the market continuously rising and making new highs. On the right side of the chart is a 1-minute level candlestick chart, which also has continuously rising peaks and troughs, forming the pattern of an upward trend.

The pattern of the 15-minute upward trend is very similar to the pattern of the 1-minute upward trend, so Dow Theory is universal across different cycles.

After discussing Dow Theory, let's move on to the focus of today, the trading concept of following the major trend, going against the medium trend, and following the minor trend.

This is a three-cycle trading concept, divided into major, medium, and minor cycles.

Let's first talk about following the major trend and going against the medium trend.In three cycles, the large cycle represents the primary trend. First, confirm the direction in the large cycle, which is the completion of the first stroke on the left side of the Dow Theory's N-shaped pattern. After the first segment is completed, the market will enter a retracement, which is the second stroke of the N-shape. This retracement, within the large cycle, is part of a corrective trend, but within the medium cycle, it indeed forms a complete counter-trend movement.

The left side of the chart is a 4-hour candlestick chart, representing the large trend. The right side is a 1-hour candlestick chart, representing the medium trend.

In the large trend on the left, after the first stroke of the N-shape is completed, the market retraces, which is part of the bullish trend within the large trend. However, this retracement within the large trend forms a complete downward N-shape in the medium trend on the right, representing a complete bearish trend. The large trend is bullish, and the medium trend is bearish, so within the medium trend, it becomes a counter-trend to the large trend.

We can also understand this in the following way: the counter-trend of the medium trend is part of the correction of the large trend, and the medium trend and the large trend are essentially one entity.

Next, let's discuss "following the minor trend."

This refers to entering the market from the smallest trend level. When the trend at the smallest level forms a trend that is in line with the largest trend, creating a favorable trading opportunity, that is when you enter. "Following the minor trend" is a mode of entry and is also the basic logic of thinking big but acting small.

The left side of the chart is a 1-hour candlestick, representing the medium trend, and the right side is a 15-minute candlestick, representing the minor trend.

After the medium trend on the left completes the downward counter-trend N-shape structure, it can be understood that the larger retracement is complete, and there is a possibility for the market to continue to reverse and move higher. At the smallest level, the 15-minute level, when an upward N-shape breakout is formed, that is the time to enter, making the smallest level a favorable bullish trend.

Finally, I will summarize this trading philosophy.

1. Confirm the direction of the larger trend.2. Wait for the medium-term trend to complete the counter-trend structure.

3. After the medium-term trend has completed the counter-trend structure, enter from the smaller time frame, choosing to enter when the smaller time frame has formed a trend structure that aligns with the direction of the larger time frame.

Note: There should be a certain span between the large, medium, and small time frames. For example, the 4-hour, 1-hour, and 15-minute combinations we discussed today are a good match. Everyone can choose their own trading time frames based on their trading cycles, such as selecting the daily chart for the large cycle, the 4-hour chart for the medium cycle, and the 1-hour chart for the small cycle.

This trading philosophy has been filtered through multiple time frames and also takes advantage of entering from the smaller time frame, which reduces the stop loss but captures the larger trend. It is a trading philosophy with high stability and a high reward-to-risk ratio, and it is quite feasible.