Trend Game: Unraveling the Core Rules of Deception in the Cryptocurrency Market
The recent market fluctuations have been quite interesting. Although it seems on the surface that prices are not rising, upon waking up, the market has gone up again. There are daytime pullbacks, followed by nighttime rebounds, and then more daytime pullbacks. This oscillation pattern is very similar to the market conditions from late April to early May. It gives the impression that prices are always struggling to break through, yet ultimately a strong bullish candle appears.
In such situations, relying solely on technical analysis can easily lead one into the traps set by market leaders; we need to combine trends for a comprehensive judgment. Many people overlook a key factor when analyzing the market—background amplification. In fact, background amplification holds significant weight in trend judgment, yet many are unclear about its concept and are entirely unaware of its importance.
The market is often filled with situations of both inducement to sell and inducement to buy. If one cannot distinguish whether the market's rise or fall is genuine or a trap set by market leaders, it is easy to incur losses.
To avoid this situation, we need to constantly understand the current market trend background. If the current trend is upward, then pullbacks are usually inducements to sell; conversely, if the trend is downward, then rebounds are often inducements to buy.
In an upward trend, the correct action is: when seeing a pullback, do not easily short; wait until a support level shows a stop-loss signal before choosing to go long.
In a downward trend, the correct action is: when seeing a rebound, do not easily go long; wait until a resistance level shows a reversal signal before considering shorting.
Trading according to the above strategies will greatly increase the probability of success.
Therefore, judging the trend is crucial, and possessing the ability to accurately judge trends is not easy. It does not solely depend on any individual technical indicator but requires mastering the entire trading system and combining it with a lot of practical exercises. If one struggles at first to accurately judge the market, it might be wise to follow established strategies, gradually improving one’s judgment and trading skills.
