What is technical analysis? Content word count: 1450 Reading event: 1 minute Many people mistakenly understand technical analysis as omnipotent, capable of estimating points and determining directions, in short, it is very impressive. This is also the initial view of every technology player, including myself, on it. In fact, technical analysis is diverse, with different schools of thought, and even the same indicator can be used by thousands of people. However, ultimately, it is neither mysterious nor impressive. It is just a tool that provides a basis for judgment for trading. The key is to see who is using this tool and how it is used? Nature of indicators: For example, the same precious sword, in the hands of a martial arts master, is a great weapon, but in the hands of a novice, it is difficult to use it as a weapon, and even wraps around the head and cuts oneself. The value of the same indicator depends on the trader's personal insights and experience, rather than solely on the indicator itself (what Sugar wants to express here is that there is no universal indicator, only traders who have sufficient understanding of the market and are proficient in applying certain indicators). If someone advocates how good a certain indicator is, whether they are a seller of indicators or have a relatively young background in the industry, it is a personal subjective judgment based on a narrow perspective. The market will soon teach them a lesson at the appropriate time, making them understand how painful this realization is. How to use the correct mindset to analyze the market: There is no standard answer to this question. Based on my understanding, the market emerges, not through analysis. After all, each and every one of us is a member of this vast sea of money, not the chief designer of market trends, and the market does not have a chief designer. If it rises too much, it will fall, and if it falls too much, it will rise. People are always assessing the impact of the two high and low points before and after on the current price, it's that simple. It is possible to estimate the possible future trend using the structure that has already emerged; But before the structure emerges, estimate where a certain coin will rise or fall in the next few days or months? It is obvious that such remarks would appear ridiculous in a constantly changing market at this moment, and it is not wrong to describe such people as either bad (using a dog's mouth as a substitute) or stupid (lacking self-awareness). It's like a child crying and asking his mother to fetch the moon for him, but he doesn't know that it's just the result of not seeing the whole picture of things when he was young. It's just a floating light and illusion. Nobody can get the moon. What Sugar Brother wants to say here is that we should learn as much as possible about the market and not be lost by others' promises, doing things that may seem ridiculous in hindsight. For example: 1. Market Trends The direction of price movement is like driving on the road in our daily lives (K-line), slower in urban areas (various fluctuations), stopping and starting at traffic lights (support and suppression), and increasing speed on highways (one-sided market trend). 2. Trend types and changes On a three lane (wide oscillation) straight lane, it is highly likely to go straight (with the direction of the area and the suppression of the oscillation on the upper track and the support of the lower track); On left and right turns, there is a high probability that it will be a left or right turn (structural transition); The same applies to two lanes (narrow oscillations) and one lane (and narrow oscillations), and occasionally due to hesitation, one may get distracted and take the wrong path or experience scratches (due to news stimuli or unexpected situations) If at a crossroads, there are three directions (oscillating structure, rising and falling sideways), If at a T-shaped intersection, there are only two directions (end of oscillation, and end of one side, rise and fall) If you get on the highway, not only can your speed increase, but you will also maintain it for a certain period of time on the next section of the road (unilateral ups and downs) 3. Conclusion To estimate where a car (structure) is going, it is important to consider the type of road it is on (trend type) and the traffic lights ahead (resistance and support). This method has a high relative accuracy, and if you don't believe it, you will understand it after standing on the roadside for 10 minutes; But when there is no car (structure), it is very difficult to predict whether the next car coming will turn left or right, walk or stop. What Sugar Brother wants to say is to predict the market based on the existing structure, rather than guessing how the market will go Having said so much, they are all just examples. We need to always understand which intersection in the market we are most likely to be at (crossroads, T-junctions, one-way streets, traffic lights), and predict the direction and speed of vehicles based on the characteristics and directional signals of each intersection. Of course, occasional accidents (such as position management and stop loss) are inevitable, but these are all rare events. We cannot say that we dare not drive on the road because of occasional small accidents. If it is a big accident (such as position management and stop loss), we may really not be able to drive in the short term. BTC