2026-01-01 17:27:58

How to identify the overall trend direction of the market? Many people ask whether they should focus on long-term trends or analyze market sentiment and fundamentals. Actually, there's a trap in this question—don't rely too heavily on emotional interpretation, and don't chase news every day, because the information you have is often already outdated. The most reliable method is simple: observe what the price itself is doing. Whether it's market sentiment or fundamental factors, bullish or bearish, they will ultimately be reflected in the price movement.

So, how to analyze this specifically? It's very simple. The first step is to observe whether the price is still moving in a clear direction. Is it trending upward or downward? Has the trend been broken? These can all be read from the candlestick chart. The coherence and rhythm of the price often tell you more than trying to guess market psychology. Stick to reading the price, and you'll avoid many detours.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

11 Likes

Reward
11
5
Repost
Share

Comment

0/400

ApeWithAPlan

· 5h ago

Look at the price, don't guess blindly, this is the real deal.

View OriginalReply0

GamefiGreenie

· 5h ago

That's right, chasing news can indeed lead to being cut, you still need to focus on the real money on the K-line.

View OriginalReply0

TokenomicsTrapper

· 5h ago

lol "just read the price action" — yeah and i bet you're also timing the bottom perfectly. the thing is, price *already priced in* the dump three weeks ago while everyone was still watching CNBC. classic exit pump pattern right there. actually if you read the contract vesting schedules, you'd see the real story playing out on-chain way before k-lines even twitch.

Reply0

DefiPlaybook

· 5h ago

According to on-chain data, price action indeed leads sentiment interpretation by about 2-3 trading cycles, and my backtesting data strongly supports this. It is worth noting that information lag causes approximately 78% of retail investors to buy at high levels when chasing news.

View OriginalReply0

SchroedingerMiner