One, first clarify whether you are investing or speculating.

Many newcomers in the crypto space call themselves 'investors' as soon as they enter, which sounds impressive, but what you're actually doing might be 'speculating'.

The difference is very simple:

• Investment: long-term holding, earning is from dividends and long-term value returns, such as shareholder dividends or holding shares in quality companies.

• Speculation: short-term entry and exit, making profits through buying low and selling high or selling high and buying low, with little relation to the long-term development of the project.

If you want to invest, choose a project you believe in, give your money to the project party, and then wait patiently; don't worry too much about the ups and downs.

But if you want to speculate, you must recognize the reality—we are speculating, making money from market fluctuations, not falling in love with the project.

Two, how to read the market without getting lost.

Since it is speculation, the goal is to understand price fluctuations and find opportunities within them.

There are many styles of technical analysis, but they all revolve around four core elements: price, trading volume, time, and news, fundamentally studying one thing—human nature.

1. Price (K-line)

A K-line records the opening price, closing price, highest price, and lowest price for a certain time period.

• The upper and lower ends of the candle body are the opening price and closing price.

• The upper shadow line is the highest transaction price during that period.

• The lower shadow line is the lowest transaction price.

Note:

In domestic markets, red generally represents an uptrend and green represents a downtrend; however, in foreign markets and cryptocurrency, the opposite is true—red indicates a downtrend and green indicates an uptrend, so be careful not to confuse them while watching the market.

2. Trading Volume

The columns at the bottom of the trading interface represent trading volume. The higher the column, the more active the trading during that time. Trading volume combined with price changes can assess the true strength of the market.

3. Moving Average (MA)

Average the closing prices of several periods and connect them with a line to get the moving average.

• When a short-term moving average crosses above a long-term moving average → Trend is bullish.

• When a short-term moving average crosses below a long-term moving average → Trend is bearish.

Many traders rely on a single moving average to make a living; all complex indicators are almost derived from it.

4. MACD

A trend indicator slightly more complex than the moving average that can assess market strength and potential reversals.

• When a short-term moving average crosses above a long-term moving average → Bullish.

• When a short-term moving average crosses below a long-term moving average → Bearish.

• Special cases are 'top divergence' and 'bottom divergence', which have relatively high accuracy but are not suitable for volatile markets.

Three, the truth about technical indicators.

KDJ, BOLL, RSI, W&R... these indicators sound impressive, but they cannot escape one fact— their calculations are essentially mathematical, and mathematics cannot perfectly capture human nature.

I used to be obsessed with various indicators and even wrote over a hundred quantitative strategies with a backtesting accuracy of up to 90%, but once I entered real market conditions, the results began to falter.

Some simple indicators, although they only have a 60% success rate, can handle most market situations when combined with money management.

Many top-tier quantitative trading systems are the same—massive amounts of code, countless models, but their actual performance is far less stable than imagined. The reason is simple: human nature is the biggest variable, and any indicator can only get close to it, but cannot fully predict it.

Four, the correct way to approach technical analysis.

Technical indicators are not a panacea, but they can help us:

• Filter out some uncertain market conditions.

• Provide a reference basis for buying and selling.

• To make decision-making more structured, rather than relying on emotions.

My suggestion is:

1. Choose 1-2 simple and easy-to-understand indicators to use repeatedly.

2. Combine price and trading volume to first learn to judge trends.

3. Don't be dazzled by flashy indicators; indicators are just aids, execution is the core.

Conclusion

The key to making money in the crypto space is not to find a 'surefire' indicator, but to understand the logic behind the indicators and combine it with money management and execution discipline.

Remember one thing: market prediction is not important; execution is what truly matters.

Dadong will continuously monitor the market, guiding fans to position themselves in spot or contracts at suitable points. There are plenty of opportunities in the crypto space; it all depends on whether you can grasp them! Opportunities won't wait for anyone; those who want to profit should quickly follow Dadong's lead!

The money in the crypto space is never 'gambled' but 'calculated.' Stay tuned, and tomorrow we will continue discussing how to ensure that every bit of your capital walks the right path.