How does technical analysis in the crypto world harm people? - Trading signal techniques on cryptocurrency exchange platforms

Because of superstitions and over-reliance on technical indicators, harming oneself is also a form of harm, a self-inflicted injury. The scale, degree, nature, and harm of this self-harm are still within a limited and controllable range. The world is vast and complex. Using some investors’ superstitions and over-dependence on technical indicators to harm others is indeed harmful, and the scale, degree, nature, and harm are very large, making it difficult for people to accept and forgive. Technical analysis has no life, does not have malicious intent, and certainly does not harm others for profit. However, some people do have such intentions. Those who understand how to leverage the aura of authority and disguise their motives with technical analysis to seek profit will have motives and methods to harm and profit from you. For them to succeed, they must rely on your trust in technical analysis. Therefore, they will definitely cultivate and strengthen this trust vigorously, which is the fundamental basis for the effectiveness of their various tricks.

This is indeed the foundation, but not the entire foundation. It must also be supplemented by your desire for profit, your urgent psychology to get rich quickly, your wish to take shortcuts, your blind trust in obvious suspicious signs, and the temptation that stirs your heart. By combining external intentions and guidance to trigger investors’ critical vulnerabilities, all these elements come together, and then they can harm people—often with precise accuracy. This is a scene that is constantly playing out in reality.

In the past, there were many viewers of television, and many channels were willing to do cryptocurrency and stock reviews because these programs were often very popular. The basis of these reviews, without exception, is news, market trends, and various technical analyses. News and market trends can influence or even guide market sentiment, while technical analysis is mysterious and profound, which can highlight the mystique and brilliance of the reviewers, increasing their persuasive power. Many reviewers also accept entrusted tasks, consciously guiding the attention and emotions of investors in front of the TV, creating a market atmosphere favorable to their clients.

As the chaos behind these cryptocurrency and stock review programs gradually unfolds and management tightens, and as TV programs gradually fall out of favor, such scenes have gradually disappeared. Objectively speaking, at that time, using technical analysis to harm people was relatively subtle and restrained. The involved parties made money more indirectly. When TV channels declined and online media, especially self-media platforms, rose, using technical indicators to harm people not only did not disappear but also became more intense.

I have personally witnessed such situations twice.

Either browsing securities websites or self-media related to cryptocurrencies and stocks, I would see information about market trends, technical analysis lectures, coin and stock diagnostics, free technical materials, and so on. To watch their videos or accept their gifts, I would be pulled into a group chat, which was truly lively.

There would be a team. The core of the team would include several experts or masters—high-level figures—using highly professional technical language to analyze and predict the market performance of individual coins and stocks, as well as future trends, even explaining some technical indicator applications. There would also be customer service, sometimes dedicated to connecting with you, enthusiastically inviting you to participate in their activities, watch their videos. The group would also include some very extroverted “beneficiaries,” who would praise the teachers’ skills as truly high, claiming they made real money, even sharing screenshots.

The first time, I chatted with customer service several times, but finally realized they had no genuine intention to pay, and I was kicked out. The second time, I was tired of just watching silently, so I kicked myself out.

Obviously, they all have a sizable team, a well-organized structure, and several experts. They try every possible way to expand their influence, using various technical means to find target groups, attract attention, pull people into groups, assign dedicated personnel for service, and accept their initially free educational content. All of these require money, and some may cost quite a bit. So, there’s no doubt—they really have a lot of money in their pockets.

If you have so much money and are surrounded by such capable experts, why not quietly make big money in the crypto and stock markets? It’s easier, less trouble, saves money, low-profile, and safe—how great would that be! But they don’t do that! They insist on making trouble, setting up operations, spending money everywhere, and even traveling thousands of miles to bring in people who are not even within reach, to do free education for you. What does this indicate?

At least it clearly shows that they do not truly believe that relying on their own money and the high-level experts around them can make them rich. Indeed, they don’t believe it! And they have good reasons not to believe. If those experts really had solid skills, they would invest a little money in the crypto and stock markets and become wealthy, and they wouldn’t come to work for others or become partners. Wouldn’t it be better to analyze the market more carefully, review and select coins, and earn more and faster? See, they have strong reasons not to trust themselves or the experts around them, but they go to great lengths to make others believe in them, believe everything they say, believe they have that ability, and believe that following them and listening to their top experts will surely make you rich. The truth of the matter is exactly this—there are indeed many people who believe in them. Isn’t that absurd?

Why do they do this? What are they after? What are they scheming? At this point, those who can understand will figure it out on their own; there’s no need for me to elaborate further.

Now, the question is: why do these malicious people succeed repeatedly? The answer is: they succeed because you leave a door open for them within yourself. Otherwise, how could they get in and succeed? What kind of door is this? Where is it left?

First, you have the desire to get rich in the crypto and stock markets. Without this desire, they wouldn’t find you, nor could they pull you into their territory. With this, there is a preliminary foundation. But every person entering the crypto and stock markets has this desire—who doesn’t want to make some money there? Indeed, everyone does. Without this desire, they wouldn’t come to the markets. The difference lies in the intensity: some are more eager, some more indifferent; some want to get rich quickly, others prefer to take steady, step-by-step progress. Because everyone has this desire, quite a few people are indeed pulled in by them.

Second, you know that making money in the crypto and stock markets is not easy. Maybe you have deep experience or have made many efforts, but you still struggle to find a safe way to profit steadily. You want to see if you can get some inspiration or help from them to take that first step earlier.

Is there anything wrong with this idea? Of course not—seeking inspiration is fine. Wanting help shows a desire to take shortcuts, which is somewhat problematic.

Learning from others’ insights, applying your own practice, and turning it into your own ability is the right way to learn warfare. But when you seek help from others, don’t forget to ask yourself: why do they want to help you? What do they want in return for their money and effort? What costs do you need to pay?

Only thinking about getting help without asking yourself these questions contains a subtle problem. With this mindset, you develop the motivation to look into their territory, even the impulse to accept their guidance or follow their lead. This is a breakthrough point, a loosened latch on your door.

Furthermore, if you’ve lost money, become tired, frustrated, confused, but are unwilling or unable to put in the effort to improve your skills through learning, practice, and cultivation—yet you still want to make money, want to save effort, and want to take shortcuts—wake up! This is the crypto and stock market. Many forces around you are much stronger and more strategic than you. No one is genuinely coming with kindness in their heart; they are all thinking about your money. If you think this way, aren’t you overthinking it?

What I mentioned earlier are the basic conditions that enable those people to succeed repeatedly. The real big show ultimately depends on technical analysis of the crypto and individual stocks. Those high-level experts they hire will appear to demonstrate their power, shake your mind. The main event is about to begin.

Technical analysis and technical indicators condense the research results of previous generations on the laws of the crypto and stock markets. Many indicators have been tested by the market, making them appear authoritative and mysterious, with a halo of their own. If you trust and revere technical analysis unreservedly, you are essentially removing your own door latch.

They will explain important technical indicators, compare them with historical trends of indices and coin prices, demonstrate their insights’ profundity, and analyze the day’s market movements after hours, including wave theory, Gann theory, Chan theory… all presented to gradually cultivate and reinforce your trust and admiration for these methods and indicators. Naturally, this also cultivates and continuously strengthens your trust and admiration for the experts proficient in these analyses. This is the fundamental and most crucial basis for their various tricks to succeed.

Is this clever? Actually, as long as you are familiar with certain technical theories and indicators, and have good eloquence to explain the subtlety of indicators based on historical trends, many people can do the same—fluent, brilliant, and impressive. It’s not very difficult for a post-event “wise man” to do this.

They also clearly understand this. So they often make forecasts, predict the next trading day’s market trend, and even point out specific coins for detailed explanation.

Predicting the market is very difficult, even for gods. They naturally keep some tricks up their sleeves, making predictions about the market’s direction that fall within their expectations, confirming the foresight of their experts.

As for individual coins, retail investors find it very difficult to predict their future performance. But for them, with certain connections and information channels, it’s not very difficult.

Any major player needs to follow the trend when they start to push up a coin’s price; when they want to use the rise to cover their distribution of chips, they need more buyers. At these times, they’re not afraid others will know the coin will rise; they’re afraid too few people know. If they can get some people to know in advance that a coin will rise, the more the better. On the other hand, many coins show signs before surging. Combining these factors, recommending two or three coins is just a small matter for them. Plus, there will always be some seemingly very grateful people coming forward to praise their brilliance, thank them, share screenshots, and the atmosphere can be fully built up.

If you approach this with clarity and vigilance, understand it thoroughly, and realize the truth, then whether you are kicked out or kick yourself out, it’s all fine. The only problem is if you still believe in the omnipotence of technical analysis and admire the high opinions of those experts. At this point, you become numb to obvious flaws, turn a blind eye, and blindly trust those who express gratitude—thinking they followed the experts’ advice and made big money. Seeing these vivid examples, you get excited and envious. At this moment, your door is wide open.

Don’t blame others for taking advantage of the vulnerability. If they don’t do it now, they would be neglecting the huge costs they’ve paid and your trust.

Such phenomena are the result of some people’s careful planning, scheming, and performance. The direct harm comes from people, but the root cause still lies in many crypto and stock investors’ superstitious and unreserved trust in technical analysis. Imagine if there were no such superstitions, if people recognized the inevitable limitations of technical analysis while trusting it conditionally, and kept some reservations—no matter what tricks are used to tempt you, make you envious and eager, would you still follow their arrangements and do as they say? Everyone knows that to forge iron, you must be strong yourself; the same applies to trading stocks and coins.

Recently, with the rapid development of information technology and artificial intelligence, some deliberately exaggerate the role of technical analysis and cultivate technical worship and superstition. This has led to another routine: waving the banner of AI plus big data. This routine is often described simply as AI guiding or even replacing human profit-making in stocks and coins. Is this really feasible?

Let’s assume for a moment that this path is possible. To succeed, certain unavoidable and insurmountable conditions must be met. At least, there must be close cooperation between AI experts and stock/coin analysis experts; secondly, the foundation of highly developed information technology and AI technology must be in place; thirdly, comprehensive and detailed key data must be obtained to provide the AI with all the basic materials needed to derive correct results. Missing any of these three points, and it would dare to deceive you without taking responsibility—just because you are missing that tiny bit.

These three are fundamental conditions that are unavoidable and insurmountable. Are they easy? Which one is easy? Which path has just begun? AI trading stocks and coins is just a topic that can excite and inspire people, but at least for now, this path is not feasible. Even if it becomes possible in the future, it still depends on human analysis. Ultimately, it still relies on human wisdom for technical analysis.

Because many people understand this, those who now promote AI trading stocks and coins do not dare to boast too much. They usually only talk about AI selecting stocks and coins, AI operating, and other peripheral topics. But in fact, even in these peripheral areas, AI cannot replace humans.

Choosing stocks and coins and operating must be based on trading concepts and strategies. Under different trading philosophies, using different strategies, the outlook on stocks and coins and trading methods will differ. This is not something AI can fully replace or universally apply.

There is a saying that in the crypto and stock markets, there are endless stories and truths, and those who believe in them will pay. This saying is quite credible.