Why do you rely more on K-line technical analysis 📈 and lose more?
"Severely oversold zone", "insufficient downward momentum in the market", "clearly entering a downtrend channel", "head and shoulders pattern formation", "sideways for a long time will lead to a decline" are all traps that novices easily fall into when trading.
First, let's take a real-world example:
During a period of 2023, the daily volatility of BTC was less than 5% for a week in a row.
Due to the long period of sideways movement, the volatility decreased, and BTC's Bollinger Bands looked extremely "healthy" and "secure" (as mentioned in Space and historical tweets).
At a top-tier family office in Hong Kong, due to the need for fund allocation, it was decided to sell the BTC that had been held for 3 years.
On the last day of the week, in the morning, the price of BTC finally rose by 5% like a snail.
At this moment, the asset manager of the family office believed it was a good time to sell, especially since it was the price high point of the week.
So, he held a short meeting and instructed the staff to sell 10,000 BTC.
Unfortunately, due to the inexperience of the staff handling the sale, they directly placed a market sell order for 10,000 BTC on a certain CEX.
Instantly, the active arbitrage bots on this exchange quickly split and spread the order worldwide, breaking through the market's order book, resulting in a large bearish candle.
Question:
Just by looking at the K-line, how would you know that a whale would come to dump the market that day?
The indicators displayed on the market are all historical data gathered and have become static facts. Can you predict dynamic possibilities just by looking at static information?
In this global game of speculation, how could you possibly know when an individual or institution in some corner of the world suddenly has the intention to buy or sell?
Entities with large capital can have extreme impacts on the market in a very short time.
Summary:
You cannot solely rely on K-line technical analysis, such as the so-called "naked K-line strategy"; these are all witchcraft 🧙.
Don't blame every sharp drop on "whales dumping the market"; most of the time, you are just accusing the market makers wrongly.
Many sudden surges and plunges in the market are the work of grass-roots organizations.
When analyzing the overall market, it is necessary to "filter out the noise" of these ups and downs to prevent interference with our analysis of the market-making range.
The market behavior of a very small number of individuals in an extremely short period of time can only lead you into the dopamine feedback trap when trading.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
