Many people ask me what exactly the meaning of market trend is. My understanding is that you need to be able to see through the market. You can analyze past movements, judge the current position, and have an estimate of the future direction. Only then can you truly understand the market trend.

What is the most important thing? It is to establish a set of methods that are logically clear, repeatable, and capable of continuous interaction. It’s not based on feelings, nor on luck.

In practical trading, I found that the core of truly understanding the market trend is actually very simple — it’s about identifying the highs and lows. When you look at the chart, can you recognize what kind of trend the first chart shows? And what about the second? Many people actually can’t see clearly.

I often add a trend line, and then the market’s direction becomes much more obvious. When the trend line isn’t broken, should you really consider closing your short position early? Not necessarily. If you enter a short at a resistance level, should you think of it as a counter-trend trade, and be quick in entering and exiting? These are details in real trading.

To put it simply, understanding the market trend means understanding the patterns. Different trading systems capture different patterns. But the most fundamental and core thing is whether this set of logic can help you see the market correctly and improve your judgment accuracy. When your thinking becomes clear, your trading success rate naturally increases.