Newbies look at candlesticks, veterans read emotions: the true price trends are written in people's hearts
When a newbie opens the Binance app, their eyes immediately focus on the candlestick chart; when it’s red, they chase it, and when it’s green, they fear it. They are fixated on 'technical patterns', fantasizing that they can predict future prices using double tops, triangles, and Fibonacci retracements.
But veterans don’t look at the patterns; they look at the emotions.
The essence of cryptocurrency prices is an amplifier of emotions. The patterns are just carriers; what truly drives the fluctuations of candlesticks are collective greed, fear, excitement, and despair. Veterans can see the psychological responses behind the charts: a long upper shadow on a bullish candlestick is a test of a rebound amidst panic; a surge without volume may indicate that the market maker is pushing the price up to sell off.
Newbies are always searching for 'certainty' in the patterns, but veterans read 'possibilities'. They pay attention to the sentiment on Twitter, the atmosphere in TG communities, the number of active wallets on-chain, the behavior patterns of the major players, and shifts in public opinion. They know that the patterns are merely the result, while market psychology is the cause.
For example, towards the end of a bull market, a newbie might see the candlestick breaking new highs and excitedly jump in, but a veteran would notice that emotions are nearing their limits—FOMO is too strong, the heat is off the charts, KOLs are collectively calling out trades, and VCs are starting to liquidate, which often signals the 'end of the bull market'.
Charts can be drawn, but emotions must be read. Newbies read charts to trade coins, while veterans read people to trade the market. The most experienced veterans no longer draw candlesticks, but rather draw emotional cycle charts, because the ones who can truly control the market are not their hands, but their hearts.
