Are K-lines really worthless before the news?
A newcomer studied K-lines for just one day. Last night at 12:00, after looking at the patterns and positions, they felt everything was spot on, so they decisively opened a $BTC short position. With confidence, they went to sleep, planning to make enough for a cup of milk tea.
Then in the morning at 7:00, when they woke up, the market reversed and surged hard—almost getting liquidated.
Only after checking did they find out that a major piece of news had been released overnight: the SEC approved the listing of a 3x Bitcoin futures ETF. This bullish catalyst immediately flipped expectations, bringing in funds that aggressively drove the move—forcefully breaking all the technical chart patterns that the K-lines had formed earlier.
The conclusion is painful: when there’s no sudden news, support, resistance, patterns, and indicators really do work, and the market moves along inertia. But the moment macro-level news arrives that can rewrite expectations, technical references fail instantly.
So the sequence matters: news sets the direction, and K-lines only help you find the locations to enter and exit. Macro news comes first; technical analysis comes second.
$BTC
#BeginnerMustRead
A newcomer studied K-lines for just one day. Last night at 12:00, after looking at the patterns and positions, they felt everything was spot on, so they decisively opened a $BTC short position. With confidence, they went to sleep, planning to make enough for a cup of milk tea.
Then in the morning at 7:00, when they woke up, the market reversed and surged hard—almost getting liquidated.
Only after checking did they find out that a major piece of news had been released overnight: the SEC approved the listing of a 3x Bitcoin futures ETF. This bullish catalyst immediately flipped expectations, bringing in funds that aggressively drove the move—forcefully breaking all the technical chart patterns that the K-lines had formed earlier.
The conclusion is painful: when there’s no sudden news, support, resistance, patterns, and indicators really do work, and the market moves along inertia. But the moment macro-level news arrives that can rewrite expectations, technical references fail instantly.
So the sequence matters: news sets the direction, and K-lines only help you find the locations to enter and exit. Macro news comes first; technical analysis comes second.
$BTC
#BeginnerMustRead