Look at bullish and bearish: Whether you are going long or short, keep an eye on the day's highest and lowest points. If the daily high and low exceed yesterday's highest or lowest points, it indicates a change in the market, making it a straightforward way to determine bullish or bearish conditions.
Look at strength: Continuous rises or drops lead to significant changes in trends; however, before breaking key levels, rockets or waterfalls often have limited strength, making it a suitable time for high-altitude low purchases.
Look at amplitude: If the amplitude is within yesterday's high and low points, the market is stable. However, when it narrows to the point of not being able to watch the market closely, it often signals an impending change; be particularly attentive. If the day's high and low points exceed yesterday's high and low points, the amplitude increases, so watch for breakthroughs at significant support and resistance levels. If there are no breakthroughs, it remains in a range-bound fluctuation, but there is still room for trading.
Look at techniques: Understand the patterns by checking the daily candlestick chart to see what shape it is in, and compare it with yesterday's candlestick analysis. Focus primarily on changes in resistance and support levels; if there are no changes, ignore it; if there are changes, adjust your trading strategy accordingly.
Look at principles: Watching the market is about short-term trading; both bullish and bearish opportunities exist. However, you should have a judgment of the overall market trend in your mind. For instance, if the current price is just an adjustment after a long-term decline and has not turned around, be very cautious when holding long positions in the short term. Conversely, in a long-term upward trend, be careful when holding short positions in the short term.