Trading is about two questions: what is it like now, and what will it be like in the future.
All candlesticks, moving averages, indicators, patterns, momentum, and so on, are meant to tell you what it is like now.
Today, we closed with a strong bullish candle of 5%. Currently above the 5-line, the 5-line is rising at a 45° angle. Is the KDJ indicator just above 50 useful? Yes, but not very much. Do you know why the probability of drowning while swimming in the sea is much higher than in a swimming pool? Because the sea is too vast; you simply can't see where you are.
So, how do we deal with the future?
Unfortunately, as long as we are human, there is no way. Therefore, we added three major assumptions.
1. History will repeat itself;
2. Prices have already reflected all information.
3. Prices run according to trends.
By using indicators, we understand the present; with assumptions, we point to the future. Well, the problem is solved.
Has it really been solved? Are all three major assumptions correct?
It doesn't matter; to see the future, we must make assumptions. What you see far ahead is a strategic plan; the same applies to enduring battles. Prices run according to trends; we know where the trend is now, and I also know where it should be next week. Holding the current position, we predict the future through assumptions; that's all there is to it.