What are indicators and patterns, really?
Many people ask me how to read indicators and patterns.
In fact, indicators and patterns are just a kind of "summary translation" of market rules by humans.
But be aware —
What you are trading is not the indicators, nor the patterns,
What you are trading is the underlying behavioral logic, the motivations of the people involved, and the positions of the counterparties.
For example:
A MACD golden cross is not a miracle; it means funds are just starting to enter the market simultaneously;
A K-line breakout on increased volume is not a pass; it indicates that someone is exerting force and making a statement at a critical level.
Even HL, HH, LL... are not valuable because of the structure itself,
but rather because of who got washed out behind this structure and who is controlling the rhythm.
So if you only look at the signals without understanding the motivations behind them,
You may easily fall into the dilemma of "seeing the right chart but taking the wrong direction."
This is the root of why many people feel that indicators are "failing": it's not that the indicators are inaccurate, it's that you used them in the wrong context.
📌 True advancement is using indicators as clues, not conclusions;
Using patterns as reflections of emotions, not buttons for instructions.
Using the human brain to understand the motivations of major players,
Using tools to calibrate the rhythm, avoiding being backfired by signals,
That is where indicators should truly belong.
