The TA common sense we've lost while watching TikTok

Once we went down the rabbit hole of crypto, we get exposed to a lot of new concepts and ideas to the point where some of us might start to forget about the basic common sense.

These are the basics of technical analysis:

1. Markets are either trending or consolidating.
2. Trend continuation is more likely to happen; we humans tend to extrapolate; market reversals is rarer.
3. Trends will end in either climax or rollover.
4. Price is more likely to continue further in the direction of the impulse. (unless it’s a reward token or a shitcoin in crypto, the direction of its price movement is almost always down)

Instead of looking at complicated indicators that lead you to nowhere, try looking at price action; it is the most elementary and significant information provided in a chart. Whether you’re a human or a robot, price movement heavily influences your decision to buy or sell.

It’s us, the investors/ traders/ bots that give meaning to the price action chart, simply because we look at it. I don’t really believe in the Fibonacci numbers in trading, but since a lot of people are using it to predict retracement, now it has real meaning!

Ask yourself, are your indicators truly have any meaning or make any sense?
(refer to the picture at the top)

I kid you not, there are pundits who use the lunar cycle as an indicator for trading. Now convince me why I shouldn't use, say, the Astrology as an indicator for trading. Common sense!

Apply basic human psychology to your trading strategies. Every trader you trade against is emotional; arguably, even the robots as their creators are humans.