Honestly, are candlestick charts actually useful?
Yes—but don’t just look at whether prices are rising or falling. Learn to read the intent behind them.
Once you understand these three bits of market code, the market becomes like a movie with subtitles: the plot is crystal clear.
Last night, I shared one of my students’ notes in the group, and within half an hour it was being forwarded like crazy!!
I’ve organized it below as a sort of “first lesson” for new followers:
I’ve watched candlestick charts for three years, and I’ve finally figured something out: candlesticks don’t speak for themselves. They just project the big players’ “inner thoughts” onto the screen. Hoping to predict the future from a few candles?
No chance. But if you can understand the big players’ code, at least you won’t be led around by the nose.
I’ve summed up three common signals to share with you.
Signal one: a fake breakdown, followed by a real push higher
The script usually goes like this: the price suddenly crashes through an important support level, and the comment section erupts in panic. Retail traders see the breakdown and rush to sell at a loss. Meanwhile, the big players quietly buy the tokens back, then push the price above support again before the market closes.
How to spot it:
1. Check the close. If the one-hour candlestick drops below support but closes back above it, it’s likely a shakeout.
2. Check the trading volume. Volume spikes as the price breaks down, but the rebound comes on lower volume—a clear sign of wash trading.
Signal two: a warning sign when volume and price diverge
The price hits a new high while volume shrinks—a classic case of “false prosperity.” Conversely, if the price stays flat while volume suddenly surges, the big players are probably quietly accumulating.
Last year, I got burned on a popular coin: it hit a new high on the daily chart, but trading volume kept shrinking day after day. Then, three days later, a guillotine-like crash wiped out all my profits.#美股一夜蒸发超2万亿，多家对冲基金面临清算
Signal three: the danger of consolidating at the highs
Sideways movement isn’t a rest; it’s a redistribution. At the bottom, the big players are accumulating. At the top, they’re selling.
How to tell the difference:
1. At the bottom, volume rises steadily, and bearish candles are quickly swallowed by bullish ones.
2. At the top, volume gradually dries up, and bearish candles slowly swallow the bullish ones. If open interest also surges at the same time, a storm is coming.
If you’re tired of going in circles, join 聊天室 and see what the big players are plotting now?
Yes—but don’t just look at whether prices are rising or falling. Learn to read the intent behind them.
Once you understand these three bits of market code, the market becomes like a movie with subtitles: the plot is crystal clear.
Last night, I shared one of my students’ notes in the group, and within half an hour it was being forwarded like crazy!!
I’ve organized it below as a sort of “first lesson” for new followers:
I’ve watched candlestick charts for three years, and I’ve finally figured something out: candlesticks don’t speak for themselves. They just project the big players’ “inner thoughts” onto the screen. Hoping to predict the future from a few candles?
No chance. But if you can understand the big players’ code, at least you won’t be led around by the nose.
I’ve summed up three common signals to share with you.
Signal one: a fake breakdown, followed by a real push higher
The script usually goes like this: the price suddenly crashes through an important support level, and the comment section erupts in panic. Retail traders see the breakdown and rush to sell at a loss. Meanwhile, the big players quietly buy the tokens back, then push the price above support again before the market closes.
How to spot it:
1. Check the close. If the one-hour candlestick drops below support but closes back above it, it’s likely a shakeout.
2. Check the trading volume. Volume spikes as the price breaks down, but the rebound comes on lower volume—a clear sign of wash trading.
Signal two: a warning sign when volume and price diverge
The price hits a new high while volume shrinks—a classic case of “false prosperity.” Conversely, if the price stays flat while volume suddenly surges, the big players are probably quietly accumulating.
Last year, I got burned on a popular coin: it hit a new high on the daily chart, but trading volume kept shrinking day after day. Then, three days later, a guillotine-like crash wiped out all my profits.#美股一夜蒸发超2万亿，多家对冲基金面临清算
Signal three: the danger of consolidating at the highs
Sideways movement isn’t a rest; it’s a redistribution. At the bottom, the big players are accumulating. At the top, they’re selling.
How to tell the difference:
1. At the bottom, volume rises steadily, and bearish candles are quickly swallowed by bullish ones.
2. At the top, volume gradually dries up, and bearish candles slowly swallow the bullish ones. If open interest also surges at the same time, a storm is coming.
If you’re tired of going in circles, join 聊天室 and see what the big players are plotting now?
