Yesterday, I analyzed the trend of Ethereum five hours in advance and almost hit the mark accurately. Friends who followed my actions reaped the rewards. This is not luck, but insight into market logic. Today’s chart seems to lack clear signals, but smart people know that opportunities lie in the ambiguity—the market always offers you two directional choices, and the true winners are those who can find profitable positions in both rises and falls.
The logic of virtual currencies is not complex. Why does the price rise? Because it has dropped to the stop-loss level of the bulls, and the bears think victory is assured, only to be counterattacked. Why does it fall? Because it has risen to the stop-loss level of the bears, the bulls begin to retreat, and the bears take over to continue the pressure. Those who are often stopped out usually do so because they have listened to too much so-called advice about "resistance levels" and "support levels," placing their stop-losses at obvious positions like previous highs or lows, thus becoming prey for the market.
About stop-loss
• Do not let your stop-loss point become the market's "dessert." Obvious "key levels" are easy to be "harvested" by the market. Try setting stop-losses slightly farther based on volatility or the ATR indicator to increase your margin of error.
• Every stop-loss is a lesson; reviewing trades is a must. Your goal is to move from being passively "harvested" to actively finding the market's "pain points."
The key to profiting
Smart people do not get tangled up in whether the market will rise or fall; they care more about where the "weaknesses" of both bulls and bears lie.
• Identify areas with dense stop-losses: market pain points are opportunity points.
• Use technical analysis indicators such as Bollinger Bands, MACD, or candlestick patterns to confirm reversal signals.
• Dynamic positioning: try to enter the market when there is hesitation, rather than following the majority in chasing highs and selling lows.
In the end, the market is actually a zero-sum game. The profits you lose will always be eaten by others. Those who always enter the market accurately look not only at charts but also at the flow of emotions, psychology, and capital. "Your stop-loss point is my entry point" is not a boast but the truth of the market. Stand on the opposite side of the majority to understand how large funds use false breakouts and false breakdowns to position themselves and control their own rhythm.