It's been a while since I wrote a long article. This time, I want to share a trading framework that I've been exploring for many years. The expression might be a bit rustic, but everything comes from real market experience, not just copying from books.

My analysis system is divided into five dimensions: technical analysis, sentiment, fundamentals, macroeconomic data, and capital flow. In addition, I will also discuss position management, capital allocation, and exit strategies.

**Technical analysis is the core tool**

Technical analysis consists of candlestick charts and indicators. I don't use those complicated and flashy tools; I stick to the most practical methods. The charts mainly reference mainstream cryptocurrencies, focusing on 4H and higher timeframes because I prefer to analyze larger cycles.

One point I especially want to emphasize: technical patterns are universal across the entire market. Stock markets, futures, crypto—any secondary market, the logic of technical analysis remains the same. Fundamentals differ, environments differ (regulations, participant groups, policy impacts), but patterns and indicators are common.

This is also why I believe that learning technical analysis is the primary task when entering the secondary market. When you lack insider information and reliable news channels, technical analysis is the most intuitive interpretive tool.

**How to read candlestick charts**

Actually, there are only two things: chip zones and structural patterns.

Taking Bitcoin 4H as an example, my common method is to use horizontal lines or price lines to segment the range. This clearly shows where funds are accumulated at certain price levels and identifies key support and resistance zones.

For example, in recent market movements, Bitcoin started to show significant changes after the 80,600 price level. In this area and its surroundings, you need to observe: where is the chip density? How is the balance of buying and selling forces? Is it accumulating or releasing?

Using this method to analyze the market makes the rhythm much clearer because chips don't lie, and price patterns reflect real supply and demand.

**The auxiliary role of indicators**

Indicators are used to verify and assist. You shouldn't rely solely on indicators, but combined with candlestick analysis, they can filter out a lot of noise.

**Position and capital management**

No matter how good your analysis methods are, without scientific position management, it's all useless. How to enter? How to add? When to cut losses? These decisions determine long-term profitability. I adjust dynamically based on risk appetite and market stage, but the core principles remain unchanged.

**About unwinding positions**

Getting caught is common. The key is how to resolve it. Sometimes adding positions to lower the average cost is feasible, but only if your analysis logic still holds. If the logic breaks, no matter how much you add, you'll only deepen the trap.

In summary, trading is about making decisions based on a comprehensive assessment of these five dimensions. There’s no 100% method, but a complete logical system. Starting from the 80,600 level, observe how the market unfolds, using technical analysis as guidance, sentiment as a reference, fundamentals as support—this way, your win rate will naturally improve.