Recently, while organizing my trading notes, I was reminded of the classic OHLC method. To be honest, many people learn a bunch of complicated indicators but end up overlooking the most fundamental things—and OHLC happens to be the kind of tool that’s more practical the simpler it is.

Open, high, low, and close prices—at first glance, they don’t seem special, but they actually reflect the market psychology changes throughout the trading cycle. My understanding is that the opening price represents market expectations, the closing price is the consensus for the day, and the high and low show the tug-of-war between bulls and bears. If you can interpret these four numbers, you can see the sentiment of an asset or the entire market for that day.

How do you use this in practice? Plot the OHLC data on a chart, and by observing the price movement, you can discover patterns. For example, if a certain coin closes higher than it opens for several consecutive days, it’s basically the buyers controlling the scene, a clear bullish signal. Conversely, if the closes are below the opens, sellers are in control, and you should be cautious. Once you identify these key levels, support and resistance levels gradually emerge, often becoming decision points for trading.

However, I want to say that relying solely on OHLC can sometimes lead to false signals. So my habit is to combine OHLC with moving averages, various technical indicators, and oscillators for confirmation. Cross-verifying from multiple angles can improve your win rate. Risk management is also crucial—no matter how clear the OHLC signals are, set proper stop-losses and avoid going all-in.

Ultimately, the OHLC strategy is about making the most effective judgment with the least information. For me, mastering this method, along with patience and discipline, can handle most trading scenarios. Interested friends can pick a few mainstream assets on Gate, try analyzing with OHLC themselves, and gradually find their feel.