You must have seen this scene:
You are staring at a 4-hour candlestick chart, thinking 'it's about to take off'
A friend looked at the same chart and said, 'It's over, it's going to collapse'
Someone in the group posted a chart: one says 'the bullish trend has just begun', while another says 'shorting at this position is a sure profit'
In the end, you are confused:
'There's only one chart, how can everyone create a universe out of it?'
Today we will thoroughly discuss this issue:
Why can different people come to completely opposite conclusions from the same market chart?
And as a trading novice, who should you follow?
1. The market chart itself carries no conclusions, only information
First, let's state the most important sentence:
The candlestick chart is not the answer; it is just a carrier of information.
The conclusion is calculated by each person's 'mind and position.'
There are only these things on the chart:
Where the price has been,
when it rises, when it falls,
the extent of fluctuations, speed, shapes,
volume, shadows, structure, moving average positions...
These are objective information.
As for:
Is this a 'bullish continuation' or a 'top formation'?
Is it 'the main upward wave starting' or 'the last surge'?
Is it 'the support held,' or 'the rebound is a short point'?
These are all subjective interpretations.
Charts don't speak,
what speaks is: timeframes, positions, trading systems, experience, and human nature.
Two, the first difference: which 'timeframe' are you looking at?
With the same chart, first ask a question:
What you see are opportunities on a multi-hour level,
or a pattern of several days or weeks?
For example:
The daily level has just started a bullish trend.
But the 1-hour level is already severely overbought, and a pullback could happen at any time.
thus there are two completely opposite individuals:
Swing traders:
"This has just started to go bullish; pullbacks are buying opportunities."
Short-term traders:
"There's a lot of risk here; there's likely to be a pullback soon, I will short a wave / not chase anymore."
The charts look the same,
but with different 'reference times,' the logic is completely opposite.
So you often see this scenario:
A is going long on the daily and 4-hour trend,
B is shorting pullbacks on the 15-minute and 1-hour charts.
Both are making money.
Only the novice in the middle who doesn't understand the timeframes is getting tossed back and forth.
It's not about who misreads the chart,
it's that you haven't even figured out which timeframe you are looking at.
Three, the second difference: Whether you have positions or not, the stance is completely different.
With the same chart, one has positions and one has none,
views can differ immensely.
1) People who are already heavily invested
The real thoughts in your mind:
"Please, don't drop, go up, just a bit more and I will..."
So any positive signals will be magnified:
A small bullish candle: "The bulls are continuing."
Volume slightly increases: "Funds are entering."
They are looking for evidence on the chart:
"To prove I am not wrong."
2) Completely out of positions.
They have no cost burdens.
It will be easier to see:
Resistance level
Divergence
Volume and price don't cooperate.
In their eyes:
Rising too quickly: "The risk has increased."
Huge volume: "Distribution may occur."
It's not about who is more professional,
but rather—the position determines perspective.
If you are holding a large position and let a person with no position show you the chart,
they will definitely be calmer than you.
Why?
—Because they are not betting real money, but pure rationality.
Four, the third difference: different trading systems, signals are just the opposite.
Don't forget, everyone has their own 'invisible system' in their mind, even if it is random, it is still a 'system':
1) Trend traders
Their core concept:
"Better to chase high than to catch the bottom."
Key points of the chart:
Breakthrough
Stabilize key moving averages.
Bullish / bearish arrangement.
For them:
After a significant rise, creating new highs: "Confirm the trend and continue to go long."
2) Reversal / Counter-trend traders
Thinking pattern:
"If it rises too much, it will pull back; if it falls too much, it will bounce."
Key points of the chart:
Top / bottom divergence.
Extreme volume.
Extreme shadows.
For them:
After a significant rise, creating new highs: "Emotional limit, bulls overextended, need to find short points."
—the same chart:
For trend followers, this is a bullish entry point.
For those who chase tops and bottoms, this is a bearish entry point.
Who is right?
Both sides may be correct for a while, but the part they benefit from is different.
Five, the fourth difference: everyone only sees what they want to see on the chart.
This goes to the psychological level.
1) Confirmation bias: conclusions first, then use the charts to prove them.
Typical process:
First decide in your mind:
"I think it will go up / go down."
Then you start to look at the chart.
All signals that meet your expectations will be magnified by you.
All things that do not meet your expectations will be ignored.
Result:
The bullish see everything as bullish signals.
The bearish see everything as top signals.
The chart hasn't changed; it's your brain helping you 'crop reality.'
2) Position bias: your position is your 'filter.'
Simply put:
If you hold a large long position, your brain will instinctively reject any 'top signals.'
If you just got stuck in a short position, you will be extremely sensitive to any 'top clues.'
You are not looking at the chart,
you are using the chart to find reasons for your emotions.
This is why I've always emphasized:
Before looking at the chart, first admit you are human, not a robot.
Six, as a trading novice, what should you do?
Here comes the key:
It's not about being the judge in the chart, deciding who is right or wrong,
but rather first rescuing yourself from the state of being dragged by various opinions.
Suggestion 1: First, choose your 'main timeframe.'
For example, you decide:
I mainly do 4-hour swings.
1-hour is used to look at details.
Daily charts are used to judge the big direction.
So you have to accept a reality:
Others' 5-minute short positions,
compared to your 4-hour long position,can both be correct at the same time.You don't need to focus on short-term fluctuations,
to deny your long-term position.
First decide which game you are playing,
then interpret the chart, instead of being led by others' timeframes.
Suggestion 2: Before looking at the chart, write a sentence—"What is my current state?"
You can develop a small habit:
Before each analysis, first label yourself:
✅ No position / light position as a bystander.
⚠️ Heavily invested in long / short.
🔥 Just suffered consecutive losses / just had consecutive wins, emotional extremes.
Then remind yourself:
"Okay, I am currently aheavily invested bull,,
so I am naturally unwilling to see any negative signals."
Just this step,
You are already stronger than 90% of those who rely on intuition to look at charts.
Suggestion 3: Don't listen to too many 'people with different systems' at the same time.
You can choose one:
You can understand
the style resonates with you.
the timeframe aligns with you.
Learn from the system of
instead of:
In the morning listen to trend followers,
in the afternoon listen to bottom pickers.
At night, listen to the gambling crowd.
Eventually, it leads to a state where:
What everyone says makes sense,
Once it’s time to place an order, your hands shake.
Remember one thing:
The charts don't need to be flashy,
as long as you have a set of logic that you can execute.
So, why does the same market chart lead to completely opposite conclusions?
Different timeframes → what you see is just different segments of the same trend.
Different positions → some need to defend, some need to attack.
Different systems → some eat trends, some eat reversals.
Different mindsets → some look for opportunities, some look for proof.
the chart doesn't take the blame,
what truly decides your fate is:
the perspective you choose to view the chart,
the rules you act upon.
(Trading novice literacy 101) This series,
is to help you step by step from 'looking at charts until your scalp goes numb,'
to 'I know what I am looking at and why I am doing this.'
If you are currently in this state:
Looking at others' analyses all seems reasonable.
When it's your turn to place an order, it completely falls apart.
Then come find me,
I will help you first tie the 'logic of looking at charts' and 'your own timeframe + style' together,
Then when you see others arguing long or short, your mindset will be much more stable—
because you know:
I don't need to guess everyone's views,
I just need to understand my own set.