The journey in the crypto world is long, and I hope everyone can take fewer detours and have fewer tragedies! I, who have achieved financial freedom, have always insisted on creating content on Zhihu. In fact, many people don't understand why, after achieving financial freedom and earning a few small goals, I still do these things?

I have also asked myself the same question. In the process of finding my original intention, on the one hand, it is for my heroic dream. I have dedicated everything to trading, and I don't want anyone to know or witness my unparalleled martial arts skills! On the other hand, I want to give people who are willing to learn a way. What I have gained in the market is now a process of giving back to the market. Tao follows nature. I remember when I was struggling for more than half a year because of the issue of how many times the leverage, and I didn't have a path to follow. I could only review the candlesticks over and over again, one by one, day and night, groping and stumbling to get to where I am now. I deeply know the difficulties of retail investors and novices in the crypto world, and I can empathize more!

If you are determined to make crypto trading your primary occupation, this article will be your stepping stone, short and profound!

Some people use technical indicators to analyze the market, and some people use capital volume to calculate entries and exits, but the truly top traders see through the entire market's emotional fluctuations and human game from the most basic candlesticks.

We always say that 'the market is like a battlefield', but in reality, the market is more like a psychological war. You think you are analyzing the market, but you are actually fighting with the humanity of countless traders. Many people think that candlesticks are the simplest things and don't even bother to study them, but those who really understand candlesticks are often the ones who laugh last.

Candlesticks may seem like just a line of red and green, but they actually contain all the codes of price, emotion, expectations, fear, greed, and hesitation. #美股代币化

🎯Candlesticks are not 'indicators', but the 'language of the market'

All technical indicators are actually derived from candlesticks - they all have a 'lagging' weakness. Candlesticks, on the other hand, are current, real-time, and the most direct reflection of fund flows.

The candlesticks we see are a dialogue between bulls and bears, a release of market forces. It is like an electrocardiogram, recording every pulse of the market.

And what you have to do is learn to understand this 'electrocardiogram'.

🔎Do you really understand the four elements of candlesticks?

Each candlestick consists of four core prices:

  1. Opening Price: The starting point of the day's trading;

  2. Highest Price: The strongest bullish attempt of the day;

  3. Lowest Price: The deepest bearish pressure;

  4. Closing Price: The final compromise between the two sides.

The shadows, body, length, and color of a candlestick are all composed of these four prices. If you don't understand the meaning of these four prices, you won't understand any candlestick patterns.

🧩Single Candlestick: The simplest, yet most easily overlooked 'market code'

✅ Large Bullish Candle / Large Bearish Candle

  • Large Bullish Candle: Strong bullish attack, the bears basically give up resistance;

  • Large Bearish Candle: Market sentiment collapses, multiple sells lead to stampedes.

This type of candlestick usually indicates the continuation or reversal key point of a trend. Especially in Chan Theory, the large bullish/bearish candle appearing at the first buy or first sell position is often the starting point of a 'stroke'.

❗ But note: Not all large bullish candles are worth chasing, the key is where it appears, whether it is accompanied by volume, and whether it breaks through an important structure. #Strategy增持比特币

✅ Shooting Star / Hammer

  • Shooting Star: Opens high and is pushed high before being suppressed, a typical top signal;

  • Hammer: Probing downward and pulling back, the bullish forces at the bottom begin to strengthen.

These 'candlestick signals', do they seem familiar?

🐒 At this time, we will tell a story to see if you have 'entered the game'? 📖 The 'Lust Dream Game' of the Ming Dynasty

In the Jiangnan region of the Ming Dynasty, there was a silk merchant named Shi Fang who wanted to do big business but had no capital. He collected a batch of inferior silkworm cocoons, sprinkled them in the mulberry forest near the village, and then spread the word: 'Wild silkworm cocoons are everywhere.'

The villagers scrambled to grab them, and Shi Fang turned around and sued the officials, saying that he had been robbed of 1,500 pounds of high-quality silkworm cocoons (actually only 500 pounds of inferior goods). As a result, the villagers were not only sentenced, but also the good goods that they really had at home were confiscated.

Shi Fang used this trick to achieve the original accumulation of 'empty-handed white wolf'.

🔍 Don't you think this is very similar to some market makers' bullish and bearish traps?

When a beautiful large bullish candle appears, retail investors rush in, in order for you to 'grab his silkworm cocoons' - the counterattack behind it is the real harvest.

So: Don't be deceived by the appearance of a single candlestick; there may be a game behind it.

🔀Two-Candlestick Combination: A signal that the situation is starting to 'turn around'

✅ Engulfing Pattern (Bullish Engulfing / Bearish Engulfing)

The body of the subsequent candlestick 'engulfs' the previous one, indicating that the trend reversal force is strong.

  • Bullish Engulfing: Appears at the bottom, indicating a reversal;

  • Bearish Engulfing: Appears at the top, be wary of risks.

✅ Piercing Pattern / Dark Cloud Cover

  • Piercing: The bullish candle pierces half of the previous bearish candle body, a bottom signal;

  • Dark cloud cover: A bearish candlestick pattern where a bearish candle closes below the midpoint of the previous bullish candle, indicating a potential top.

📌 In practice, if engulfing patterns or dark cloud cover patterns appear at the end of a trend, and trading volume changes, the signal will be stronger.

👀 Let's tell another story. Can you see 'who is the monkey' this time?

📖 The 'Monkey Game' of the Southern Song Dynasty

Wu Ye, a tea merchant from Fujian, asked people to go up the mountain to reclaim land and plant tea. The workers were lazy and lazy, and Wu Ye, in a fit of anger, made some fake gold ingots and secretly buried them in the mountains. #美国加征关税

The next day, someone 'found gold' and immediately quit his job and ran away. The others didn't believe it and searched for gold overnight. The entire mountain was turned upside down, and in the end, Wu Ye 'turned around and accused' them of stealing gold. This group of people was arrested and imprisoned instead, becoming his 'free labor'.

This is the 'Monkey Game' - first create opportunities to lure people in, then reap the benefits and control them, leaving them with no power to fight back.

Think about it, isn't it the same as fake breakouts, bullish and bearish traps, and fake good news in the market?

A seemingly ordinary candlestick may also be a 'pit' dug by funds.

📊 Three or more candlesticks: Key to trend turning points and advancing rhythm

✅ Morning Star / Evening Star

  • Morning Star: Bearish candle + Doji + Bullish candle, a sign of a bottom rebound;

  • Evening Star: Bullish candle + Doji + Bearish candle, a top reversal signal.

This three-candle combination, when combined with signals such as trend ending positions, volume contraction/expansion, and MACD divergence, can be a very strong reversal signal.

✅ Three White Soldiers / Three Black Crows

  • Three White Soldiers: Three consecutive bullish candles, a strong bullish attack;

  • Three Black Crows: Three bearish candles, the bears continue to sell off.

If it appears in the starting segment of a stroke, it can basically be used as a representative of a 'propelling candlestick'.

✅ Equilibrium Candlestick Combination

Bulls and bears confront each other, the volume decreases, the candlesticks shrink, and the amplitude narrows - the market enters a 'cooling-off period', which is often the stage of building a center.

At this time, watch more and move less, and avoid high-frequency operations.

🧠The real masters don't see candlesticks as patterns, but as 'situations'

Stop treating candlesticks as rigid patterns; they are actually market 'situations'.

  • A large bullish candle is 'fishing';

  • An engulfing pattern is a 'turnaround';

  • A doji star is 'hesitation';

  • A evening star is a 'dead cat bounce' followed by a sell-off;

  • Three white soldiers are a 'bull trap assault'...

Each candlestick is the result of someone designing it, someone entering, and someone exiting. If you only stare at the candlestick without thinking about the logic behind it, you can easily get trapped in the 'monkey game' and end up being the 'monkey' who carries the sedan for others.

📌 Beyond technique, what you need more is thinking

If you feel like you are always being harvested and always chasing highs and killing lows, it's not that you are stupid, but that you still can't see through the situation.

Candlesticks are just appearances; the way of thinking is fundamental.

Just like the extraordinary book (Poor Scholar General) says: The truly powerful are not those who hold power, but those who can understand people's hearts and know how to strategize.

Reading candlesticks is a practice. It is sensitivity to market sentiment and understanding of human volatility.

Rather than saying that candlesticks are a trading technique, it is better to say that they are a mirror of market humanity.

Finally, I will share a set of iron laws, which are 10 top thinking principles that can allow you to continue to survive and make big money in the crypto world. I remind all crypto friends to keep them in mind:

1. The criterion for judging a master is to look at the length of their empty positions: A true master not only profits when the market rises, but more importantly, they know to decisively choose an empty position when the market is unclear or the risks are high. This patience and self-discipline is the core element of success.

2. During a bear market, all purchases may be mistakes: During a bear market, the overall market trend is downward, and any purchase at this time is likely to encounter even greater declines. Therefore, it is wise to maintain a cautious attitude and reduce or even do no trading as much as possible until the market stabilizes significantly or the bull market arrives.

3. During a bull market, all sales may be mistakes: In a bull market, prices continue to rise, and selling too early may miss out on even greater profits. Stick to holding and go with the trend, and only consider selling when the market trend changes significantly.

4. The fundamental of investing lies in buying low and selling high: It sounds extremely simple, but it is difficult to implement in practice. The key is to have enough patience to wait for the right entry and exit points, and not be swayed by short-term market fluctuations.

5. The direction of the market is determined by the main funds: The main direction of the market is driven by large-scale funds. Understanding the dynamics of the main funds can help us go with the trend and avoid being trapped in counter-trend operations.

6. Technical and fundamental analysis are no match for the overall trend: Whether it's technical analysis or fundamental analysis, they both seem insignificant in the face of the market's overall trend. Going with the trend is the key to achieving long-term profitability.

7. Negative news at the top indicates the bottom, and you should sell decisively: When the market is at a high level, negative news often means that the market is about to reverse, and this is the perfect time to exit.

8. Negative news at the bottom actually indicates the bottom, and you should buy boldly: In the bottom area of the market, negative news usually reflects extreme market panic, and this is precisely the best time to buy.

9. Being rich once in a lifetime is enough; be sure to protect your existing wealth: Do not be greedy, know when to take profits at the right time, and protect the money you have already earned. This is the key to achieving long-term success.

10. Bitcoin must be allocated, otherwise you may not make money in the bull market: Bitcoin, as the leader of the cryptocurrency market, is often one of the currencies with the most significant gains in the bull market. Properly allocating Bitcoin can help us achieve stable returns in the bull market.

These valuable words of advice are the crystallization of years of practical experience, and are worth thinking about carefully and strictly following. It is hoped that these suggestions can help everyone take fewer detours in the market and move steadily towards success.


No matter how diligent a fisherman is, he will not go out to sea to fish during the stormy season, but will carefully protect his fishing boat. This season will always pass, and a sunny day will always come! Follow Yan'an, and you will be taught both fish and fishing skills. The door to the crypto world is always open. Going with the trend is the key to having a successful life. Collect this and keep it in mind!