99% of retail investors get this question wrong.
Some say: technical indicators are useless, everything relies on news.
Others say: technical indicators are all-powerful and can accurately catch bottoms and tops.
But the truth is:
Technical indicators are not divination, but rather 'behavioral references.'
Technical indicators are not all-powerful, but you cannot do without them.
Indicators cannot tell you whether the price will rise or fall in the future, but they can tell you—
Is the market currently at an emotional high or a panic low?
MACD, RSI, Bollinger Bands, trading volume…
These are not predictive tools, but rather a 'reference system' to help you make decisions.
Those who know how to use them treat them as a dashboard.
Those who do not know how to use them treat them as lottery numbers.
Blindly trusting technical indicators is the biggest trap.
Do you think a golden cross is a buying point?
Do you think a divergence must reverse?
You forgot that the dealer is also watching the indicators you are looking at; the technical patterns have long been manipulated and understood.
So the key is not 'what to look at', but rather who is looking, what cycle to pair with, and what logic to overlay.
So how should we use technical indicators?
Used to judge emotional extremes, such as RSI < 30 oversold, RSI > 70 overbought.
Assisting in building positions/profit-taking rhythm, not the sole basis.
Overlay fundamentals/news/on-chain data to improve win rates.
In summary:
Technical indicators are not 'signals', they are 'hints'. If you don’t understand the indicators,
You are prone to emotional trading; but if you only look at indicators, you are more easily harvested in the opposite direction.
Ending suggestion:
Don't be a mindless chart follower, and don't be purely a news follower.
What you need is your own trading system,
which includes—technical analysis, position control, news response, profit-taking and stop-loss.
💡 Understanding technology ≠ Being able to trade.
Those who truly make money are always the ones who 'use technology to control emotions.'
