Understanding K-lines means understanding the expectations, suspicions, fantasies, greed, and fear of human nature in trading... K-lines are the most fundamental symbols of market movement, carrying the trajectory of capital flow and recording the process of capital gains and losses.
In fact, the analysis of K-line charts has a strong subjective color, which leads to different methods and results for each person.
This depends on a person's character;
Secondly, it depends on a person's comprehension;
Thirdly, it depends on a person's experience;
Fourthly, it depends on their market philosophical view;
Fifthly, it depends on their understanding of risk;
Sixthly, it depends on their consideration of returns;
Seventhly, it depends on the influence of the surrounding environment;
Eighthly, it depends on the characteristics of the market they are trading in;
Ninthly, it depends on their capital scale, and so on.
K-line charts are not a science, but a concentrated reflection of market psychological factors. You can grasp its nature, but cannot grasp its degree; it leaves many subjective judgments for everyone, causing those who try to quantify it to ultimately fall into confusion.
This is a world that statistics cannot understand. Rationality is often the greatest enemy. There is no absolute certainty or unchanging element here, only general experiential summaries. Just as there is no perfect trade, there are no perfect patterns in K-line charts. When analyzing patterns, you should not be confined to the patterns but should seek the intrinsic essence, understanding the changing power dynamics between bulls and bears.
Western technical analysis emphasizes scientific rigor, while Eastern technical analysis emphasizes dialectical thinking. Combining the strengths of both, the best trading strategy is: keep an eye on your losses and let profits run. Therefore, even if everyone has their own methods, in the end, all methods converge to the same source.