It’s just that this kind of certainty is deeply hidden—it’s not in those anxiety-inducing candlestick movements, but in the set of stable underlying logic operating behind price fluctuations.
Why do most people lose money? Where’s the problem? They stare endlessly at the ripples on the surface (that is, the ups and downs of price), but never look beneath the surface—even though what truly determines the direction of those ripples is the invisible undercurrent below. If you can figure out how the undercurrent flows, those surface fluctuations instead become traceable.
The certainty I’ve worked out for myself is actually a three-layer interlocking logical structure.
**Layer 1: The Market’s Own “Grammar Rules”**
The market looks chaotic, but in reality, it has its own set of rules. Just like speech needs grammar to make sense, price movements also need to “make sense” by following a certain internal logic.
The core of this logic isn’t simply “A causes B”; rather, it’s a chain of interlocking causes and effects:
**The “Life Cycle” of Trends** Trends have a complete life cycle. They don’t just pop up out of nowhere, nor do they suddenly vanish without a trace.
The starting point is often the slow accumulation of momentum (such as long periods of sideways consolidation), then, driven by consensus, the trend gradually gains strength; once the momentum is exhausted, it begins to decline (a typical signal is price-volume divergence), and finally transitions into a new trend. Each step is an inevitable extension of the previous one.
**The “Waxing and Waning” of Forces** The bulls and bears aren’t just a matter of one side overwhelming the other. The dominant side won’t stay strong forever—their strength is gradually consumed during the push; the weaker side also won’t remain weak forever, and can strike back at any time after gathering strength. It’s a dynamic tug-of-war.
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
4
Repost
Share
Comment
0/400
PositionPhobia
· 12-06 22:43
The metaphor of underwater currents is brilliant, but honestly, even if most people understand it, it’s useless—they still can't change their habit of chasing gains and panic selling.
View OriginalReply0
NFTBlackHole
· 12-06 22:35
That's right, but how many people truly understand these three layers of logic?
View OriginalReply0
LiquidationHunter
· 12-06 22:33
It sounds good, but the key is still to have enough capital to survive until the day you can see the undercurrents clearly.
View OriginalReply0
DecentralizeMe
· 12-06 22:28
It seems reasonable, but at the end of the day, it's still just hindsight.
Is there really certainty in the market? Yes.
It’s just that this kind of certainty is deeply hidden—it’s not in those anxiety-inducing candlestick movements, but in the set of stable underlying logic operating behind price fluctuations.
Why do most people lose money? Where’s the problem? They stare endlessly at the ripples on the surface (that is, the ups and downs of price), but never look beneath the surface—even though what truly determines the direction of those ripples is the invisible undercurrent below. If you can figure out how the undercurrent flows, those surface fluctuations instead become traceable.
The certainty I’ve worked out for myself is actually a three-layer interlocking logical structure.
**Layer 1: The Market’s Own “Grammar Rules”**
The market looks chaotic, but in reality, it has its own set of rules. Just like speech needs grammar to make sense, price movements also need to “make sense” by following a certain internal logic.
The core of this logic isn’t simply “A causes B”; rather, it’s a chain of interlocking causes and effects:
**The “Life Cycle” of Trends**
Trends have a complete life cycle. They don’t just pop up out of nowhere, nor do they suddenly vanish without a trace.
The starting point is often the slow accumulation of momentum (such as long periods of sideways consolidation), then, driven by consensus, the trend gradually gains strength; once the momentum is exhausted, it begins to decline (a typical signal is price-volume divergence), and finally transitions into a new trend. Each step is an inevitable extension of the previous one.
**The “Waxing and Waning” of Forces**
The bulls and bears aren’t just a matter of one side overwhelming the other. The dominant side won’t stay strong forever—their strength is gradually consumed during the push; the weaker side also won’t remain weak forever, and can strike back at any time after gathering strength. It’s a dynamic tug-of-war.