Top trader Eugene Ng Ah Sio, a name many in the crypto space swear by, is doubling down on his conviction: pure technical analysis is the only way to navigate the current market insanity. Forget the fundamental noise, the ‘what ifs’ about macroeconomics – it’s all a distraction, according to Eugene.
He dropped this truth bomb on his channel, stating frankly that the correlation between Bitcoin, gold, and the S&P 500 is, to put it mildly, a damn mess. It shifts and changes faster than a Shiba Inu’s price chart. Attempting to predict based on these relationships is a fool’s errand, a recipe for getting wrecked.
Instead of chasing fleeting narratives, Eugene is playing it smart, maintaining a fully hedged position. No stacking gold, no shorting the S&P – he’s letting the price action dictate his moves. Honestly, it’s a refreshing dose of discipline in a sea of hype.
Deep Dive: Technical Analysis – A Trader’s Compass
Technical analysis focuses on past market data, specifically price and volume, to identify patterns and predict future movements. It’s about reading the market’s ‘fingerprints’.
Unlike fundamental analysis, which looks at factors like economic indicators and company financials, technical analysis assumes everything is already priced in. The price is the truth.
Key tools include chart patterns (head and shoulders, triangles), moving averages, and indicators like RSI and MACD. These help identify potential buy or sell signals.
While some dismiss it as ‘voodoo,’ successful traders like Eugene demonstrate it can be incredibly effective, especially in volatile markets where fundamentals are constantly shifting.
