9 Battle Strategies

[Taogu Ba]
Learn in chapters in order, a total of twenty-one chapters

Chapter One

Emotion AcB System (Part I)
Original Author: Publication Date:
Today’s content is extremely important, it contains my 27 years of hard work!
Having experienced multiple bull and bear cycles, going through tens of thousands of practical trades, step by step!
Hardening my youth to carve out a blood path!
Deciphering the stock market code with wisdom, penetrating the market’s essence with sweat!
Over 27 years, every bull and bear cycle has allowed me to witness the disappearance of a generation of rookie investors, countless traders turning profits into roller coasters, turning hope into a lifeline of losses.
Over 27 years, I have personally witnessed at least four generations of rookie investors disappear. Honestly, I want to say, in this market, first and foremost, you must ensure your trades survive. Having impressive talk is useless; there is a fundamental difference between stock commentators and traders.
“Emotion Quantification AcB Trading System” carries 99% of the spirit blood of American stock god Jesse Livermore, and 60% of George Soros’s spirit blood!
The essence of the market is speculation; speculators are the true investors—they are the real trendsetters. Without them, the market would be like a stagnant pond.
My greatest achievement over 27 years is the creation of this trading system, which can quantify the three major human weaknesses: greed, fear, hope, through numbers, ultimately pinpointing precise buy and sell points.
This system is a new trading approach beyond the three realms (fundamental, technical, capital), a unique method I developed myself. It originates from the three realms but surpasses them, offering a completely new perspective that can instantly enlighten you and reveal the secrets of the universe!
Meeting others’ posts is fate; giving roses leaves a lingering fragrance.
Today, we focus on one of the system’s eight key indicators: the Cycle Pressure Measurement Value
This indicator is the most important among all; it’s like the foundation of a tall building—every other indicator depends on it!

What is the Cycle Pressure Measurement Value?
It refers to the panic level within a stock during a market crash. If the market crashes but this stock shows no signs of panic, it indicates all investors are optimistic about this stock, unaffected by the market plunge, and the outlook remains bullish. These investors are the bulls.
What are bulls? What are bears?
1. Usually, the market refers to buying as bullish and selling as bearish, but we are not.
2. We study the changes in the three major human weaknesses, so we define as bullish those who can hold firmly after buying, not selling due to external reasons (like negative fundamentals, market crashes, external downturns).
Investors who buy but cannot hold firmly—perhaps selling out of fear of losing profits, or worried about their stocks falling with the market, or because of deteriorating fundamentals, or holding too long without returns and wanting to switch stocks—are called bears.
The concept of “seeing many and doing more” means we first quantify the investors in a stock: whether the number of those holding firmly exceeds those selling due to certain reasons. How to quantify this? That’s where the Cycle Pressure Measurement Value comes in. Let me give an example:
In 2018, the market index dropped from 3587 to 2440 points over a year, a decline of 1147 points, or 30%.

We know the market reflects the overall performance of all stocks, averaging their declines. Many stocks declined in sync with the market, indicating investors in these stocks were frightened by the market drop and sold accordingly, causing their prices to fall in tandem. This shows that the bears outnumber the bulls in these stocks.
Therefore, stocks that decline with the market should not be traded. Instead, we look for stocks that did not decline during a major market drop, indicating their investors are steadfast and unaffected by the market plunge. Also, even if investors traded during this period, the stock price did not fall in sync, meaning the bearish investors are few, and most investors are holding firm. These sellers cannot influence the stock price.
In 2018, during the market plunge, were there any stocks that did not fall? Yes, like China International Medical Equipment (China CME).

This stock rose against the market during the 2018 crash, indicating no selling behavior—only active buying. If someday the market stops falling, the bulls in this stock will definitely not sell because they have strong faith (for various reasons). Conversely, investors who sold out of fear during the market decline will also stop selling once the market stabilizes. In summary: when the market does not fall, bulls do not sell, bears do not sell, and the only remaining activity is active buying, which can drive the stock price higher and higher. This stock can then become the next bull stock, as shown in the chart:

Next, let’s continue with the classification of the pressure measurement value
The pressure measurement value is classified based on the market’s decline: the more severe the market drop, the higher the pressure measurement coefficient.

We know some stocks can resist declines when the market drops 10%, showing a measurable pressure value; but when the market drops to 30%, investors start to fear, lose confidence, and sell, causing the pressure value to disappear (market trend prediction can be done with the “Three Axes” method, which we will explain in detail later).
So, the more severe the market decline, the greater the value of stocks with measurable pressure values.
For example: in 2008, the market fell 70%; in 2018, it fell 30%. Stocks with measurable pressure values in 2008 are more valuable than those in 2018.
In the 2008 bear market, the market dropped 70%, and many stocks fell 90%. In such a harsh environment, did any stock show a measurable pressure value despite the market’s big decline? Yes, as shown in the chart:

This is very obvious—the pressure measurement coefficient in 2008 was extremely high. Stocks with measurable pressure values then were theoretically super big bull stocks. In reality, one such stock indeed became a huge bull, rising 370 times from its lowest to highest point!

Its name is Tonghua Dongbao. Take time to review, learn more, and understand better.
Pressure measurement values can also be classified by time: they include cycle pressure values and intraday pressure values.
What is the intraday pressure value? And where is it mainly used?
Intraday pressure values are mainly used in high-volume trading. They summarize all market sentiment over four hours of trading in a day, reflecting a real-time trend that corresponds with the market’s overall movement.
Essential for leading stock strategies
For example, if the market is declining that day, we must identify stocks that are rising against the trend during intraday trading. This indicates that investors holding these stocks will not sell just because the market drops sharply that day. You will observe that the market keeps falling while these stocks resist the decline—what we call the “resistance level.” Essentially, this reflects investors’ strong belief in their holdings, quantifying that the bulls outnumber the bears. As shown in the chart: last Friday’s market drop

And a particular stock’s intraday performance was:

This stock’s potential for a rebound that day is very high.
What is the ratio of bulls to bears in the cycle pressure value?
As long as 51% of investors hold firmly without selling, a cycle pressure value will be generated. Since the maximum proportion of bears in circulation is 49%, trading leads to accumulation. Over time, some investors will buy and hold firmly, increasing the proportion of bulls. This causes the stock to enter a right-side trading phase. As time passes, the ratio of bulls to bears will grow larger. When the ratio reaches a certain level, it creates trading value—for example, from 51:49 gradually to 70:30. The more obvious the ratio, the greater the stock’s volatility, characterized by big rises and small retracements, entering a period of low buy-in and high selling. This is most clearly seen in the AcB pattern. By analyzing the size and the time relationship of the AcB pattern, we can precisely quantify the bulls and bears ratio, identify buy and sell points. At this stage, we move to the next indicator: smooth high-frequency and same-amplitude fluctuations.
Due to time constraints, I will stop here today. I hope everyone maintains an open mind—like practicing a skill, sometimes you need to discard old unprofitable methods and gradually accept a new approach.
Why can we often find precise entry points in trading? Why can we predict market rises and falls? Because we study the market’s essence, grasp human nature’s changes, quantify emotion bars (green and red), and compare stock price AcB with trading volume movements.