In the crypto market, after years of experience, I've seen too many traders focus all their attention on technical patterns, only to end up losing more and more. The problem isn't which indicators they use, but rather that they fundamentally don't understand the truth behind market volatility—price movements are, in essence, driven by capital flow.

Today, I want to discuss a few things that sound very basic but are surprisingly misunderstood by most people.

**What is hidden behind the candlestick chart?**

Most people interpret candlesticks incorrectly. They focus on various patterns and combinations but never ask themselves one key question: How are candlesticks formed?

Simply put, the size and shape of a candlestick directly reflect the volume of capital inflow and outflow. When capital inflows are high, the real body of the candle grows; when there is fierce battle between bulls and bears within a certain period, the shadows become long. What does a bullish candle with a long lower shadow (commonly called a hammer) fundamentally indicate? Although the price temporarily drops, big players are aggressively buying at low levels, eventually pushing the price back up. This is what is known as the "smart money" in action.

Large funds, amounting to tens of millions or hundreds of millions, cannot enter the market instantly. They need to proceed gradually, building positions in batches, which may take hours or even several days. The candlestick patterns formed during this period show a certain continuity. Once you understand this, you'll realize why longer-lasting trends are harder to break—the process of big money building and closing positions requires sufficient time.

**What does it really mean to follow the trend?**

Many people shout "follow the trend" all day long, but when asked where the "trend" actually comes from, they often can't give a clear answer.

In fact, the essence of a trend is the movement of big capital.