The true meaning of market trends: How to understand market movements from three perspectives

SellTheBounce · 2026-02-26T15:05:11+00:00

Understanding the market requires establishing a comprehensive cognitive framework, using tools like trend lines to identify market highs and lows, and respecting market rhythm. True traders rely on logic and patterns rather than emotional fluctuations, continuously optimizing their predictions through practice and reflection to improve trading stability.

SellTheBounce

2026-02-26 15:05:11

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Understanding the market is never based on intuition or luck. Truly grasping the meaning of market trends involves establishing a complete cognitive framework — one that can analyze past price movements, understand the current market condition, and predict future directions. This way of understanding helps us build a stable, repeatable, and sustainable interaction with the market.

Core of Market Analysis: Recognize Patterns, Not Follow Fluctuations

Different trading systems view the market from various perspectives, and the patterns they identify can differ. But regardless of the methodology, the most fundamental and crucial skill is: learning to identify highs and lows. This is not only a basic technical skill but also the gateway to understanding the logic behind market movements.

When we encounter different candlestick patterns, the market characteristics shown in the first and second charts are completely different. However, once I add trend lines as a key tool, the overall market structure becomes clearer. Trend lines not only confirm the market direction but also provide a basis for our judgments.

Practical Market Judgment: From Trend Lines to Trading Decisions

When a trend line is not effectively broken, should we prematurely abandon our short positions? This reflects a deeper understanding of the market — learning to respect its rhythm. If you choose to enter short near resistance levels, quick entries and exits, and seizing opportunities against the trend, are wise strategies.

Those who truly understand the market are not fooled by short-term price fluctuations but can make consistent, verifiable trading decisions based on a well-established logical framework. Developing this ability requires continuous practice and deep reflection on market patterns. By constantly refining our understanding of the market, we can improve our prediction accuracy and ultimately achieve more stable trading results.

Related tags: #BTC #ETH #TradingAnalysis

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