Market charts and time conventions

I. Candlestick Chart Explanation

A candlestick chart is used to display the opening price, highest price, lowest price, and closing price of a financial instrument within a certain time range.

Common K-line periods include: 1 minute, 5 minutes, 15 minutes, 1 hour, daily line, weekly line, etc.

K-lines of different periods reflect market conditions over different time ranges. When reading historical cases, the first thing to confirm is the K-line period used in the chart.

II. K-line rise/fall color conventions

Financial markets in different countries and regions have different display conventions for candlestick charts and the colors used to indicate price rises and falls.

In mainland China markets, red typically indicates a rise and green a fall, whereas many market software platforms in international markets such as Europe and the United States typically use green for a rise and red for a fall. The meanings of the two colors are exactly opposite.

The above are merely common display conventions, not a globally unified standard. Many market software programs allow users to set candlestick colors themselves.

1. K-line bullish/bearish vs. actual rise/fall

Under normal circumstances:

• Yang line:The closing price is higher than the opening price.
• Yin line:The closing price is lower than the opening price.

The yin-yang of a candlestick and the price change calculated relative to the previous trading day's closing price are not necessarily the same.

2. Read charts from different sources

Since historical cases may use market charts from different countries, regions, or software platforms, the meanings of colors may differ.

III. Difference Between Trading Days and Calendar Days

A trading day is a date scheduled by the exchange for trading, while a calendar day is a date on the calendar.

Due to the existence of weekends, statutory holidays, and night trading sessions, trading days and calendar days are not always in a one-to-one correspondence.

For futures products with a night session, the night session on the evening of the previous business day usually belongs to the next trading day.

IV. Futures Night Session and Day Session

Some varieties in China's futures market have night trading sessions.

A trading day's market movements may begin on the evening of the previous business day and continue until the Summer Fire+ close of the current trading day.

For example, the regular trading hours for Rebar futures are as follows:

The above is an example for regular trading hours. For special dates and historical trading arrangements, the rules published by the exchange at the time shall prevail.

China's futures market began gradually introducing night trading sessions in 2013. After 2016, many futures varieties such as Rebar have night trading sessions, but some varieties still do not have night trading sessions.

The night session end times for different futures products may also vary.

5. Date conventions for daily K-lines

For futures products with a night session, the daily K-line may include both the night session of the previous business day and the daytime session of the current trading day.

For example, under normal circumstances, Tuesday's daily candlestick chart might include:

• Monday night's night session.
• Tuesday's market update for Summer Fire+.
• Tuesday afternoon Summer Fire+ market conditions.

Therefore, the date marked on the daily K-line is not necessarily the actual calendar date on which all the market movements occurred.

6. Holiday intervals within five trading days

When observing the market conditions over five consecutive trading days, it is necessary to note whether there are weekends, statutory holidays, or other market closure intervals in between.

Five trading days are not necessarily equal to five consecutive calendar days.

1. Normal trading week

If normal trading occurs Monday through Friday, with no other market closure arrangements, it typically constitutes five consecutive trading days.

2. Cases where public holidays exist

If there are holidays within the five trading days, the actual number of calendar days spanned will increase.

For example, suppose the market is closed on Wednesday:

The above is a hypothetical example; the actual trading date shall be subject to the exchange's trading calendar.

In the study, Guest simultaneously records the sequence of trading days and the natural dates for Guest, paying attention to gap movements before and after market closures and the market conditions after reopening.

7. Time of solar term transition

Some historical research cases need to refer to the specific dates and times of the transitions of the twenty-four solar terms.

The transition of solar terms may occur at:

• During daytime trading hours.
• During the night trading session.
• Summer Fire+ or other market closure periods.
• Weekends or statutory holidays.

Therefore, the time of solar term transition and market trading hours do not necessarily coincide.

1. Distinguish before and after the transition of a solar term.

If there is a solar term transition within the observation interval, it is necessary to clearly distinguish the actual market conditions before and after the transition.

2. Use accurate solar term times

The transition between solar terms is based on the specific moment for the Guest, and it cannot be simply assumed that all market movements on the day of the solar term occur after the transition.

When different countries and regions are involved, it is also necessary to first unify the time zones before comparing the specific times.

8. Heavenly Stems and Earthly Branches Daily Flow and True Solar Time Conventions

In addition to trading days, calendar days, and the transitions of solar terms, some research cases also need to consider the start and end times of the Gan-Zhi Daily Flow.

Due to differences in longitude across regions, local clock time and true solar time may not be completely consistent.

Therefore, when using true solar time to calculate the Heavenly Stems and Earthly Branches Daily Flow, the Beijing time corresponding to the Daily Flow transition for the Guest may not necessarily be fixed at 23:00 or 00:00.

1. Determine the time calculation location.

In research, the time calculation basis to be adopted needs to be determined in advance.

• Location of the exchange:Calculate true solar time based on the geographic longitude of the exchange's location.
• Location of divination:Calculate true solar time based on the geographic longitude of the actual divination location.

Different locations may yield different true solar time results.

The same group of experimental guests shall use consistent calculation standards, and the location cannot be changed temporarily based on market results.

2. True solar time deviation

The difference between true solar time and standard time mainly involves the longitude difference of the location and the equation of time.

When Beijing time is used as the reference, the longitude correction is approximately:

The above longitudes are positive for east longitude, with each degree corresponding to a time difference of about 4 minutes.

Actual true solar time also needs to take into account the equation of time, which varies with the date.

Different locations and different dates may result in different final time correction results.

3. Sexagenary Cycle Daily Flow Day Change Rules

Traditional time divisions have different day-change conventions, such as Winter Water+ changing the day at 23:00, or Summer Fire+ changing the day at 00:00 midnight.

If true solar time and the Winter Water+ initial day-change rule are adopted, true solar time correction must be performed first, and then the actual day-change moment after conversion to a unified time zone must be determined.

22:00 is merely an example of a possible dividing time; it is not the date-change moment uniformly adopted in all regions.

4. Daily Flow handover occurs during the night session

For futures products that open at 21:00 and end their night session at 23:00, under certain time calculation rules, the Daily Flow handover may occur during the night trading session.

For example, suppose a certain calculation determines that 22:00 Beijing time is the Daily Flow handover point:

Therefore, the night session of the same trading day, according to the selected Heavenly Stems and Earthly Branches Daily Flow rules, may span two different Daily Flows.

The Gan-Zhi Daily Flow transition will not change the trading day attribution specified by the exchange.

5. Observe the handover in conjunction with the intraday chart.

If the Daily Flow handover occurs during the trading process, the Guest shall use minute candlestick charts or intraday charts to distinguish the price movement before and after the handover.

If the handover occurs during a market closure, then observe the trading conditions after the handover starting from the next actual market opening.

6. Time recording requirements

For cases involving true solar time and Daily Flow transitions, it is recommended to record:

• Actual date, time, and time zone used.
• The selected time calculation location.
• The geographic longitude of the location.
• Whether to perform true solar time correction.
• Whether to use the 23:00 or 00:00 day-change rule.
• The actually calculated Daily Flow handover time.
• Daily Flow Intraday trend before and after handover.

9. Time agreements across time zones and in Southern Hemisphere regions

Some cases in this study use market data from Chinese exchanges, whose trading hours typically follow Beijing Time (UTC+8).

However, the actual divination location may be in other countries and regions.

This is especially important for time zones other than UTC+7 and UTC+8, as well as regions with a significant time difference from Beijing Time, where special attention to time conversion is required.

Due to factors such as time zones, longitude, true solar time, daylight saving time, and the times of solar term transitions, the same actual moment may correspond to different local dates and times for the Guest at different locations.

When calculating according to different sexagenary day-change rules, the attribution of the corresponding Guest sexagenary date may also differ.

1. Impact of different time zones

For example, regions such as China, Japan, Europe, North America, and Australia do not all use exactly the same standard time.

At the same actual moment, it may already be the next day in China, while in other regions it may still be the previous day.

Therefore, when casting a hexagram across time zones, the local clock time cannot be directly used as Beijing time.

Guest records the exact local time and time zone, then performs the necessary time conversion.

2. The impact of daylight saving time

Some countries and regions observe daylight saving time.

During the implementation of daylight saving time, local clock time may be one hour ahead of standard time.

If daylight saving time is ignored, the actual time may be inconsistent with the recorded time.

3. Southern Hemisphere region

For regions in the Southern Hemisphere such as Australia, New Zealand, and South America, it is also necessary to note that the local seasons differ from those in the Northern Hemisphere.

For example, when the Northern Hemisphere is in summer, the Southern Hemisphere may be in winter.

However, the opposite seasons in the Northern and Southern Hemispheres do not mean that the traditional sexagenary day-count cycle must necessarily change.

If the study involves the relationship between solar terms and seasons and Guest, it is necessary to clarify the calendrical standard adopted and distinguish between the actual moments of astronomical solar terms and local seasonal changes.

When involving sexagenary cycle dates, Guest still calculates according to the unified sexagenary calendar, time zone, true solar time, and day-change rules.

4. It is recommended to use Tianji I Ching Six-Line online divination

Before use, Guest confirms that the date, time, and local time zone settings on the computer or mobile phone are correct.

The system's time zone compatibility handling, true solar time correction, and the sexagenary day change rules belong to different stages. For research involving precise time boundaries, still Guest confirm the relevant Guest calculation rules.

5. Cross-time zone market observation

Regardless of which country or region the divination takes place in, market analysis all Guest adopts a unified time baseline.

It is recommended to also retain:

• The local date and time of the divination location.
• Time zone and daylight saving time information for the location.
• Converted Beijing time.
• Trading hours of the exchange for Guest.

This can avoid errors in matching the hexagram casting time with the K-line trend for the Guest due to different time zones.

10. Market Observation of Different Hexagram-Shaking Periods

Divination may occur before the night session opens, before the Summer Fire+ session opens, or during trading.

Different situations need to be handled separately.

1. Cast a hexagram before the night session opens.

For example, cast a hexagram at 20:30 in the evening, and the relevant instrument's night session starts trading at 21:00.

At this time, the night session has not yet opened on Hot Earth - the observable trading market after casting the hexagram begins at the 21:00 open.

If there is a Daily Flow handover during the night session, also record the handover time as a Guest, and distinguish price changes before and after the handover.

2. Cast a hexagram before the opening of Summer Fire+.

For example, if a hexagram is cast at Summer Fire+ 8:30, the related instrument opens at Summer Fire+ 9:00.

If night trading has already been completed previously, then the night session market movement occurred before the hexagram was cast and cannot be counted as part of the trend after the hexagram was cast.

Guest has been observing actual price changes since the opening of Summer Fire+.

3. Casting a hexagram during the plate

If the hexagram casting occurs during trading hours, for example at Summer Fire+ 10:00, then part of the day's market movement has already formed.

Guest: Using the actual moment of casting the hexagram as the dividing line, observe only the price changes that occur afterward.

Market movements that have already occurred before 10:00 that day cannot be counted as observation results after the hexagram casting.

11. Observe the intraday trend starting from the time of the hexagram casting.

Regardless of whether the hexagram casting occurs before the night session, before the opening of Summer Fire+, or during trading hours, the actual time of the hexagram casting shall be used as the baseline to observe the subsequent market movements.

1. Accurately record the time of the hexagram casting.

Guest records the actual date and time of the hexagram casting, preferably precise to the minute.

If the market is trading, the Guest observes starting from the market conditions after the hexagram is cast.

If the market was closed at that time, then observe market price changes starting from the next actual market opening.

2. Use minute K-line charts or intraday charts.

It is recommended to combine the following charts:

• 1-minute K-line chart.
• 5-minute K-line chart.
• 15-minute K-line chart.
• Time-sharing trend chart.

Select an appropriate chart period based on the required observation precision.

For example, if the hexagram is cast at Summer Fire+ 10:15, it has already risen from 9:00 to 10:15 that day.

Then this part of the rise belongs to the market movement before the hexagram casting and cannot be taken as the result after the hexagram casting.

Need to continue observing price changes after 10:15.

3. Limitations of daily K-line charts

Daily candlestick charts reflect price changes over the entire trading day, but usually cannot directly show the exact times when the intraday high and low prices occurred.

Therefore, when casting the hexagram during the trading session, the Guest confirms through minute-level data the highest price, lowest price, and actual price movement process after the hexagram is cast.

If a certain minute K-line spans the moment of the hexagram casting, it is also necessary to note that this K-line may contain data from before the hexagram casting.

When higher precision is required, finer-grained market data can be used.

4. Multiple time cutoff points

Within the actual market observation interval, the following time nodes may exist simultaneously:

• Actual divination time.
• Exchange opening and closing times.
• Weekend and holiday market closure intervals.
• Time of the solar term transition.
• The交接 time for the Daily Flow of the Heavenly Stems and Earthly Branches.
• Convert time across time zones or daylight saving time.

These time points may overlap with each other, or they may occur at different times.

In the research records, Guest is accurately marked so as to analyze Guest's actual intraday trend.

Twelve: Notes on Reading Market Illustrations

Some historical cases are accompanied by candlestick charts, with notes explaining the actual price movements during different time periods.

When reading charts, it is important to note:

1. Confirm the market symbol and candlestick timeframe.
2. Confirm the color rule of red for up and green for down, or green for up and red for down.
3. Confirm the actual date and time of the divination.
4. Distinguish trading days from calendar dates.
5. Determine whether the relevant varieties have a night session.
6. Distinguish the trends of the night session and the day session.
7. Check the holiday intervals within five trading days.
8. Check whether there is a solar term transition.
9. Confirm the actual boundary time of the Daily Flow.
10. Confirm the location used for the true solar time calculation.
11. Pay attention to the effects of different time zones and daylight saving time.
12. Distinguish between before the night session, before the Summer Fire+ market open, and divination during the trading session.
13. Observe the trend after casting the hexagram in conjunction with the intraday chart.
14. Carefully read the notes and trend descriptions in the chart.

Thirteen, Summary

Note: This article is used to standardize chart reading, time division, and research record standards for historical market case studies. Trading hours are subject to the rules of the relevant exchange at the time. Solar terms, true solar time, and the sexagenary Daily Flow are time division conditions used in research and do not mean that a proven predictive relationship between them and market changes exists. The actual scope of application of the cross-time-zone self-Moving processing function is subject to the current implementation of the Tianji I Ching Six-Line system.