Last night I shared a student's study notes in the group, and to my surprise, it was spread everywhere in half an hour.
Many new followers just entered and still have a limited understanding of the market, so I decided to organize it into an article, serving as the 'first lesson' for everyone.
In the past few years, I have been watching the K-line charts almost every day, and my deepest realization is: K-lines do not speak for themselves; they are merely traces left by the operators.
Do you expect to predict the future based on a few candles? Forget about it.
But if you can understand these 'secret codes,' at least you won't be easily harvested.
I have organized three common 'secret codes' to share with you:
1. Strong Breakout Type
This type of movement is often accompanied by increased volume, directly breaking through key levels. Don't think about chasing on the first candle; wait for confirmation before following up, so the risk and win rate match.
2. Continuous Small Positive Candles with Mild Volume Breakout
This usually indicates that the operator is testing market support; they are not in a hurry but are steadily pushing up. Don’t underestimate this type of movement; many large wave trends start from 'small positive ants moving houses.'
3. Breakout Pullback Type
This is the most common and easiest to understand. After the breakout, the operator will 'look back' to test the strength of the support. If the pullback does not break the key level, it often presents you with an opportunity to get in.
The K-lines of the market change every day, but the operators' methods do not change. If you can understand their language, you can avoid many detours.
Remember one thing: the market is not a blind guess; it is a contest of logic and rhythm.
This is the first lesson I organized for new friends.
The real value is always in the details. Learning to observe patiently is more valuable than blindly chasing rises and falls.