The Five Elements
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In traditional Chinese philosophy, natural phenomena can be classified into Five Elemenrs (Wu Xing), or the Five Phases.  Although the term is generally translated as "five elements," the word 'wu' does indeed mean 'five.'  However, the word 'xing' has been translated into 'agents', 'qualities', 'properties', 'change', and 'courses'. 

Wu Xing, according to my teacher (Joey Yap) can be more accurately described as
Five Transformations of Qi from Yin to Yang and vice versa.

Each element is a representation of matter and energy as it changes from one to the next with each one classified under one of the five elements.  It is this constant transformation and interaction that creates balance in the universe.
The elements are:

Metal (
jin)
Wood (
mu)
Water (
shui)
Fire (
huo) and
earth (
tu)

The system of five phases was used for describing interactions and relationships between phenomena. It was employed as a device in many fields of early Chinese thought, including geomancy, feng shui, astrology, traditional Chinese medicine, military strategy, and martial arts.

The doctrine of five elements describes two
Cycles of Balance, a generating or creation (sheng) cycle and an overcoming or destruction (ke) cycle of interactions between the elements.

Productive or Generating Cycle - also know as "Xiang Sheng" or "Forward Cycle", is a positive transformation.  An element transform into the next by positive interaction, generating good results. 

Sequence:  Wood feeds fire; fire creates earth; earth bears metal; metal carries water; and water nourishes wood.

Controlling Cycle
- occurs when an element counters the next leading to a more opposing and aggressive force.

Sequence:  Water puts out fire; fire melts metal; metal cuts wood; wood break earth; earth consumes or hold water.

Weakening Cycle - occurs when one element drains the energies from the next.  Unlike the controlling cycle, the transformation is not aggressive and it is often the preferred way of countering an undesirable Feng Shui affliction.

Sequence:  Wood is nourished by water, thus weakening it; Metal is weakened by water; Earth is weakened by metal; Metal weakens Earth; Fire is weakened by Earth; Wood is weakened by Fire.