Recently organizing trading notes, I realized that many people don't fully understand the OHLC concept. Simply put, OHLC refers to the four data points: opening price, highest price, lowest price, and closing price. When combined, they can reflect the true market sentiment over a period of time.

My approach is to first mark these four prices on the chart, then observe their relationships. For example, if the closing price is often higher than the opening price, it generally indicates that the bulls are in control, and demand is clearly rising. Conversely, if the closing price is consistently below the opening price, it suggests that the bears are dominant, and caution is needed.

The core of the OHLC strategy is actually to identify support and resistance levels. When the price repeatedly oscillates within a certain range, these key points become especially important. I usually combine this with moving averages and various indicators for a more accurate judgment. Relying solely on OHLC can easily lead to false breakouts.

Some time ago, I used this method to catch a bottom, observing that the difference between the opening and closing prices was narrowing, while the lowest prices were gradually rising. This indicated that selling pressure was weakening. Although it sounds simple, proper risk management is essential—set your stop-loss levels in advance, or a black swan event could wipe out your entire position.

Honestly, the OHLC trading strategy is fundamental to technical analysis. Mastering it can save you a lot of unnecessary losses. The key is to watch the market more, practice often, and adjust according to your trading style.