After being immersed in the cryptocurrency market for a long time, I gradually realized a profound truth: market trends are always honest, but investors often deceive themselves.

Why are newcomers always easily "harvested" by the market? It's not due to a lack of funds, but rather an inability to grasp the hidden information behind candlestick charts. Candlestick charts are actually traces left by large capital operators, and if one can accurately interpret them, many potential risks can be avoided. Let's explore four often overlooked but crucial market signals together.

1. False Breakout: The "Bait" of Big Funds

This is a common misleading strategy. The price appears to break through previous highs, enticing inexperienced investors to follow, only to then face a sharp decline.

The key lies in the trading volume. A genuine breakout is usually accompanied by a significant increase in trading volume, at least 1.5 times the average trading volume of the previous three days. In contrast, a false breakout often just briefly touches a high point before quickly retreating, with unimpressive trading volume.

2. Volatility Needle: "Emotional Test" of Large Capital

You may have encountered a situation like this: a large bearish candlestick suddenly appears, causing panic; right after that, a large bullish candlestick pulls up, making people think a reversal is coming. This is actually large funds testing the psychological endurance of market participants.

It is important to note that the yin-yang needle combination that appears at the support level usually indicates a market cleanup; while the yang-yin needle combination that appears at the resistance level may signal a sell-off.

3. Consolidation: The Patience Game of Large Capital

Do not underestimate the importance of sideways trading; it is one of the most effective psychological tactics for large funds.

When the market consolidates for more than 15 days, many investors tend to exit due to a loss of patience. However, the real trend often only becomes apparent at the end of the consolidation. A rule of thumb is: the longer the consolidation period, the stronger the potential trend after the breakout.

The key to determining whether a breakout is reliable lies in the synergy between trading volume and price. A true breakout is usually accompanied by a simultaneous increase in both trading volume and price, while a false breakout often occurs with a decrease in trading volume.

By deeply understanding these market signals, investors can better grasp the pulse of the market and make more informed trading decisions. Remember, in the encryption currency market, knowledge is power. Continuous learning and staying vigilant are essential to remain undefeated in this market full of opportunities and challenges.