To trade, you must closely track the flow of funds
The K-line, fluctuations, shocks, and trends in the market are all driven by funds. Behind the funds are people, and understanding their thoughts and perceptions is very important. However, the purpose of coming to the market to trade is singular: to make money.
As long as there is an action involving real capital, it definitely reflects the true thoughts of that person, meaning we can infer their genuine intentions through their financial behavior. Therefore, tracking the flow of funds is crucial.
There are many different methods to track funds in the market. As a technical analysis enthusiast, I judge the flow of funds through naked K, trading volume, and open interest. By comprehensively analyzing these indicators, I can determine the direction of funds. Once I analyze the fund flow, I follow these funds because they are smart money and have a significant impact on market fluctuations.
Trading is essentially about analyzing the flow of funds, and on a deeper level, it’s about analyzing human nature.
As a seasoned investor in the crypto space, I, Tu Fei, share my experiences and insights. Are you interested in the crypto world but don’t know where to start? Follow me and check out my profile to achieve freedom in this bull market.