Last night, a student's notes exploded in the group chat, and within half an hour, it was unstoppable. Let me organize it and serve as a stepping stone for newcomers.

To be honest, I’ve been watching the chart for three years and finally understood the core: candlesticks themselves are mute; they only depict the market maker’s intentions. Relying solely on a few candles to guess the future? Dream on. But if you can read what the market maker is up to, at least you won’t be cut as a leek.

I’ve summarized three common strategies and share them with everyone.

**Strategy 1: Looks like a breakdown, actually a trap**

The story always goes like this: the price suddenly breaks through a key support level, and the comment section immediately erupts in wails. Retail traders panic at the breakdown and rush to cut losses. Meanwhile, the market maker quietly scoops up cheap chips, then pulls the price back above support before the close.

How to identify?

First, look at the closing. If on the 1-hour chart, the price dips below support but closes back above, it’s basically a shakeout. Then check the volume — it spikes at the moment of the breakdown but shrinks during the rebound. The signs of a false move are too obvious.

**Strategy 2: Divergence between volume and price signals danger**

When the price hits a new high but volume shrinks — that’s a classic sign of false prosperity. The reverse is also true: if the price moves sideways but volume suddenly explodes, nine out of ten, the market maker is quietly accumulating.

Last year, I got caught on a hot coin: the daily high was new, but the volume kept decreasing day by day. Then on the third day, a sharp sell-off came, and all profits were wiped out.

**Strategy 3: The truth about consolidation zones**

Consolidation is never rest; it’s about dividing the spoils. At the bottom, consolidation means the market maker is accumulating at low prices; at the top, it’s about distributing at high prices.

What does bottom consolidation look like? Volume gradually increases, and bearish candles are quickly swallowed by bullish ones. Top consolidation? Volume gradually shrinks, and bullish candles are slowly eaten by bearish ones. Once you see a surge in open interest at the same time, a storm is coming.

Do candlesticks matter? Of course. But don’t just look at the rise and fall numbers; you need to understand who’s controlling the market behind the scenes.

Once you master these three strategies, the market is like a movie with subtitles — you see the plot clearly. Want to avoid taking unnecessary detours? Master these techniques and stop spinning in circles.