Market trends: buy and then fall, sell and then rise? Those late-night holding positions until dawn, only to be finally liquidated—probably everyone has experienced this. Every time this happens, I start to reflect—is it just bad luck, or is there a problem with the method?

Let me be honest with you, the problem is not luck at all, but a crucial step you miss before opening a trade: chart line analysis.

Having been involved in crypto short-term trading for 8 years, from three margin calls and eating instant noodles for over a year, to now being able to profit steadily, if I recorded all the pitfalls I’ve stepped into, it would be enough to circle the trading market three times. After experiencing all this, I want to say a big truth: those who are very skilled at MACD and Bollinger Bands don’t necessarily make money; but traders who truly understand naked K-line analysis and know how to draw lines can at least avoid 80% of common traps.

Many beginners jump straight into stacking indicators, thinking that the more complex the indicators, the more professional they look. But the more they look, the more confused they become, ultimately turning trading into a game of guessing size. My advice is straightforward: turn off all those fancy indicators! Naked K-line is the most authentic language of the market—the record of all bulls and bears’ battles, all market participants’ psychological changes, are written plainly on each K-line. Your job is to learn how to read it.

Don’t misunderstand, naked K-line analysis isn’t that mysterious. Basically, it boils down to two things: finding the right key high and low points, and drawing good support and resistance lines. I’ll explain it in the simplest way possible, so if you don’t understand, feel free to ask in the comments.

**Step 1: Basic Skills—Locate Key K-lines in 3 Seconds**

What do you look at in naked K-line? Not to memorize complicated pattern theories, but to focus on three points: high points, low points, and those K-lines with especially long upper and lower shadows—"pin" K-lines. Honestly, you don’t need special training for this; as long as your eyes are okay, you can spot them. Open any chart, scroll through historical data, and identify the obvious highest points, the lowest points where the price sharply dropped, and those eye-catching K-lines with long shadows. Mark them all. These positions are the key nodes that determine market direction.

Why are these points so important? Because they represent the most intense battles among market participants. The high points are the last bastion for bulls, the low points are the final line of defense for bears. Once these levels are broken, it’s often a sign of a trend reversal.

**Step 2: Drawing Lines—Two Lines Decide the Outcome**

After identifying the high and low points, the next step is to draw lines. This is the most core, simplest, and most effective tool in naked K-line analysis. The method is straightforward: connect the high points with a line, and connect the low points with another line—nothing more.

Once these two lines are drawn, the entire market logic becomes clear. If the price oscillates between these two lines? It indicates that the market has not yet decided. If the price breaks above the upper line? Bulls may be gaining strength. If it falls below the lower line? Bears might be gathering momentum. All trends are measured against these two lines.

Crypto market volatility is often much more intense than traditional financial markets, but the underlying patterns are similar. Short-term trading, in essence, is about finding these high and low points and support and resistance levels. If you get them right, follow the trend, and profit becomes a matter of probability. If you get them wrong and go against the trend, liquidation is only a matter of time.

I’ve seen too many traders staring at all kinds of indicators every day, yet still suffering frequent losses. Why? Because indicators are inherently lagging. By the time you see a signal from an indicator, smart money has already started acting. Instead of chasing indicators, it’s better to look directly at the market itself. Naked K-line is the most straightforward reflection of the market—it doesn’t lie.

So my conclusion is: organize your trading system, learn to read naked K-lines, and draw good lines—more important than anything else. This isn’t some advanced skill; it’s basic training. Master the fundamentals well, and your success rate in short-term trading will naturally improve.