Group 1 - The core concept of the article revolves around the trading strategy of "divergence" as described in the Chan theory, which emphasizes the importance of predicting turning points for buying low and selling high [1] - The article explains the method of "momentum divergence" using the MACD indicator, where a bottom divergence occurs when the stock price makes a new low while the MACD shows a shortening of green bars, indicating a potential reversal [1] - It highlights the necessity of selecting stocks with clear structures and strong trends for effective trading, as weak trends may lead to repeated divergences and increased downward momentum [1] Group 2 - The article introduces a simplified rule for identifying bottom formations, which requires that the current candlestick's highest price is higher than the highest price of the previous two days, and the lowest price is also higher than the lowest price of the previous two days [2] - It provides a visual example to clarify the identification of bottom formations, emphasizing the need for confirmation through subsequent candlesticks if the initial conditions are not met [2] - The article also mentions that while there are various combinations for identifying formations, they ultimately adhere to the same fundamental rules outlined for bottom formations [2] Group 3 - The article describes the process for identifying top formations, which is essentially the reverse of the bottom formation process [3] - It acknowledges that all methods may encounter failures, but maintains that the simplicity and effectiveness of the described methods are appealing and align with Dow Theory principles [3]