One sentence: Don't care how flowery the project's whitepaper is written, don't care how awesome the founder is, I only look at the K-line, volume, indicators, and follow wherever the price goes!

Its essence is three ironclad principles

  • Price already contains all information (all good and bad news are in the K-line)
  • Price will follow the trend (if it's rising, it definitely wants to keep rising; if falling, definitely wants to keep falling)
  • History repeats itself (human greed and fear haven't changed for centuries)

Three divine tools that 99% of retail investors are using

  • Moving averages: When the 5-day crosses above the 20-day (golden cross), charge in; when the 5-day crosses below the 20-day (death cross), run away—simple and brutal
  • RSI: Below 30, floor price—buy like crazy; above 70, ceiling price—sell like crazy; overbought and oversold at a glance
  • MACD: Red bars expanding, DIFF crossing above DEA—go long; green bars expanding, death cross—run for your life

Classic signals, just copy the homework

  • Golden cross and death cross: Short-term MA crossing above long-term MA → get in; crossing below → cut losses
  • Head and shoulders top/bottom: Textbook reversal patterns, spot one and eat for three years
  • Bollinger Bands contracting then expanding: Either explosive rise or crash, get your ammo ready
  • Volume breakout above previous high: Main uptrend starts, dare to chase and you'll get the meat

Why do some people curse technical analysis?

  • Self-fulfilling prophecy: If the whole world watches the 20-day MA, it really works
  • Too many fake breakouts: Golden cross today, death cross tomorrow, stop-losses until you puke blood
  • Black swans wipe everything out: War, regulation, hacker coin thefts—K-line turns into a cliff

But why do 99% of people still look at it every day?

Because it really works!
 
  • Short-term traders rely on it to eat: Grab a few points a day, compound it and it's 100 times better than a job
  • Long-term holders use it to find low buys and high sells: Don't catch the falling knife at the top, don't cut meat at the bottom
 
Technical analysis is like a weather forecast—not 100% accurate, but if you go out without checking the weather, that's not bravery, that's stupidity.

Last words for all the brothers and sisters watching K-lines

Fundamentals tell you "this coin is worth 100k USD",

 

Technicals tell you "dare to catch it at 100k USD now?".

 

The former makes you hold, the latter keeps you alive to hold that day.

 

Grab both hands, make both strong.

 

Those who only believe in fundamentals end up as faith-based bagholders;

 

Those who only believe in technicals end up as chase-high-kill-low retail fodder.

 

The true old retail investor trains both legs into iron rods,

 

Earns technical money when rising, earns fundamental money when falling,

 

Earns funding rate money when sideways.

 

This is truly living.