My journey with peaks and troughs: A tale of a trader searching for the secrets of the market

I have always been fascinated by those magical points on charts that determine the fate of money! Yes, I'm talking about the peaks and troughs - those areas where greed meets fear in a constant struggle over the financial markets.

Honestly, I see that peaks and troughs are not just dry technical terms as analysts describe them. They are points that tell stories about real battles between sellers and buyers! When I look at a peak, I see a moment of victory for the sellers and their humiliation of optimistic buyers. And at the trough, I witness the surrender of terrified sellers!

I won't deceive you - identifying true peaks and troughs is harder than it seems. How many times have I thought I discovered a perfect buying bottom, only to find the price drops further and crushes my account? The major platforms' advice on “buying at the bottom” is often misleading!

I remember when I tried to apply the “double tops” model in 2022, and I bought based on “perfect” technical analysis, but the market crashed just days later. These patterns are not magic recipes as some promote!

What experts don’t tell you is that peaks and troughs only become clear after it’s too late. When you see a clear peak, the market has already dropped, and when you see a clear trough, the market has already risen!

As for the trends, yes “higher highs and higher lows” indicate an upward trend, but how many times have we been fooled by a false bullish pattern? These indicators only work in stable markets, not in the volatile cryptocurrency markets we are experiencing.

Tops and bottoms remain an important tool in a trader's arsenal, but they are not magical. They are a guide and an indicator, not a prophecy! In my view, one should never rely solely on them, but rather integrate them with other indicators and understand the fundamentals of the assets you are trading.

Don't let the lines on the chart cloud your judgment! Behind every peak and trough is a real story of human greed and fear, and understanding this story is more important than drawing perfect lines.