[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Wey How [@wey_how12640](/creator/twitter/wey_how12640) on x 2926 followers Created: 2025-07-21 03:09:36 UTC Is Setup Everything? "Does it Want to Go Higher"? (What are you really trading behind the technical) A) Foreword B) The Underlying Logic of Technical Analysis (J Law) C) My $NVDA Example (shift in balance pre-BO) D) My Pop Mart Example (context > patterns) E) Last Words A) Foreword @mkl85 got it ~ "The question to really answer as a trader is, does the stock want to higher?" In a trading world which is full of "setup is everything/ no setup no trade" mentality, I have been saying that stocks > setups for a while (an easy verification if you have followed me long enough), and I recently also said that I don't trade patterns, I trade the context. It takes courage for me to say something out of the norm that makes most other accounts frown, because birds of the feather flock together, and sometimes I just had to say that "I am an investor, not a trader" to water down the contrasts and potential conflicts. If you are still following me at this stage, I hope you have found my past sharing useful, instead of misleading or financially devastating. Behind how I trade, is a realisation based on personal experience (20year+) that trading solely based on setups in a coldly rational way doesn't work for me, and I can also trade/ invest with a positive outcome without those specific setups. The key in trading or investing is to find a style which suits you, and be consistently good at what you are doing. Context, which I care the most in almost everything in trading or in life, certainly matters too (bull market + the right theme and the right name). What is it all about then, do we still trade setups or not, and what makes the difference? This brings us to the next section. I believe @JLawStock J Law and his team recently published an article in their blog which nails it 100%, and I will do a quick summary of it in English. B) The Underlying Logic of Technical Analysis (J Law) J Law does a good job in explaining all the WHYs when he is going through his methods and process, I think due to his background in the teaching profession, he enjoys teaching and at times "reprimanding" (where deserved) the public for having the wrong mindset in the market. According to the article, trading is hard because the price of the market is the ultimate decision of all the market participants. Hence the market is always full of randomness and uncertainty. Each time is unique (history doesn't simply repeat with the outcome simply copied over) and anything can happen (there are far more things that you don't know compared to what you think you know). However, the underlying reason for the price movements is still the same, which is the balance between the supply and demand of the securities. The core of the technical analysis is then an analysis of this pivotal shift in the balance of supply and demand, and use it to formulate trading strategies with a net positive outcome. The article then goes on to possible signals hinting at the shift of balance: PA around the MAs, significant bars, setups and patterns, transaction volume, RS, BO of support and resistance. There is also a small note to say that no single signal can confirm a shift, you need collaboration from a few. Personally, I adopt a learning approach to trading. If I understand it, then I have the confidence in blending it into my process. Trading without understanding is a no for me. Once you understand the core underlying logic, you will never look at technical analysis (or the rules) the same way again, whether you trade setups or not. C) My $NVDA Example (shift in balance pre-BO) My cherry-picked example of $NVDA. I have seen traders complaining about "no-setup" opportunity hence they missed the recent BO. For me, I just start buying and averaging up on every sniff of strength and with price confirmation that "it does want to go higher". My $NVDA post: D) My Pop Mart Example (context > patterns) Pop Mart (SEHK 09992) is another favourite example of mine where a beast stock > setup, and context > patterns. I met up with some investment acquaintances early this year where we shared experiences and talked about investment opportunities. One of the stocks we talked about is Pop Mart. I was showing them that despite all the automated "sell signals" given by their systems, and visually all the "bearish" patterns e.g. bearish engulfing, perceived fear of overextension or "distribution", Pop Mart is still advancing to the upside due to its strong fundamental. Now, in just a few months since the meeting, it has doubled in price again. Will it just go up forever? Definitely not, but it is a case of just respects the trend if you are a trend follower. E) Last Words I will just finish off this post with three quotes from Peter Brandt which is relevant to the message of this post: "Keep in mind that there is nothing sacred about a chart pattern. Markets are not obligated to behave in accordance with chart formations." "What is the best way to trade charts? There is no best way, in my opinion. Even if charting is an approach that makes sense for you, every trader has their own personality, level of risk aversion, and amount of capital." "Every trader must find an approach that works for them. What works for one trader may not work for others."  XXXXX engagements  **Related Topics** [trader](/topic/trader) [pop mart](/topic/pop-mart) [wey](/topic/wey) [$nvda](/topic/$nvda) [stocks technology](/topic/stocks-technology) [Post Link](https://x.com/wey_how12640/status/1947131819633348701)
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Wey How @wey_how12640 on x 2926 followers
Created: 2025-07-21 03:09:36 UTC
Is Setup Everything? "Does it Want to Go Higher"? (What are you really trading behind the technical)
A) Foreword B) The Underlying Logic of Technical Analysis (J Law) C) My $NVDA Example (shift in balance pre-BO) D) My Pop Mart Example (context > patterns) E) Last Words
A) Foreword
@mkl85 got it ~ "The question to really answer as a trader is, does the stock want to higher?"
In a trading world which is full of "setup is everything/ no setup no trade" mentality, I have been saying that stocks > setups for a while (an easy verification if you have followed me long enough), and I recently also said that I don't trade patterns, I trade the context.
It takes courage for me to say something out of the norm that makes most other accounts frown, because birds of the feather flock together, and sometimes I just had to say that "I am an investor, not a trader" to water down the contrasts and potential conflicts. If you are still following me at this stage, I hope you have found my past sharing useful, instead of misleading or financially devastating.
Behind how I trade, is a realisation based on personal experience (20year+) that trading solely based on setups in a coldly rational way doesn't work for me, and I can also trade/ invest with a positive outcome without those specific setups. The key in trading or investing is to find a style which suits you, and be consistently good at what you are doing. Context, which I care the most in almost everything in trading or in life, certainly matters too (bull market + the right theme and the right name).
What is it all about then, do we still trade setups or not, and what makes the difference?
This brings us to the next section. I believe @JLawStock J Law and his team recently published an article in their blog which nails it 100%, and I will do a quick summary of it in English.
B) The Underlying Logic of Technical Analysis (J Law)
J Law does a good job in explaining all the WHYs when he is going through his methods and process, I think due to his background in the teaching profession, he enjoys teaching and at times "reprimanding" (where deserved) the public for having the wrong mindset in the market.
According to the article, trading is hard because the price of the market is the ultimate decision of all the market participants. Hence the market is always full of randomness and uncertainty. Each time is unique (history doesn't simply repeat with the outcome simply copied over) and anything can happen (there are far more things that you don't know compared to what you think you know).
However, the underlying reason for the price movements is still the same, which is the balance between the supply and demand of the securities.
The core of the technical analysis is then an analysis of this pivotal shift in the balance of supply and demand, and use it to formulate trading strategies with a net positive outcome.
The article then goes on to possible signals hinting at the shift of balance: PA around the MAs, significant bars, setups and patterns, transaction volume, RS, BO of support and resistance. There is also a small note to say that no single signal can confirm a shift, you need collaboration from a few.
Personally, I adopt a learning approach to trading. If I understand it, then I have the confidence in blending it into my process. Trading without understanding is a no for me.
Once you understand the core underlying logic, you will never look at technical analysis (or the rules) the same way again, whether you trade setups or not.
C) My $NVDA Example (shift in balance pre-BO)
My cherry-picked example of $NVDA.
I have seen traders complaining about "no-setup" opportunity hence they missed the recent BO. For me, I just start buying and averaging up on every sniff of strength and with price confirmation that "it does want to go higher".
My $NVDA post:
D) My Pop Mart Example (context > patterns)
Pop Mart (SEHK 09992) is another favourite example of mine where a beast stock > setup, and context > patterns.
I met up with some investment acquaintances early this year where we shared experiences and talked about investment opportunities. One of the stocks we talked about is Pop Mart. I was showing them that despite all the automated "sell signals" given by their systems, and visually all the "bearish" patterns e.g. bearish engulfing, perceived fear of overextension or "distribution", Pop Mart is still advancing to the upside due to its strong fundamental. Now, in just a few months since the meeting, it has doubled in price again.
Will it just go up forever? Definitely not, but it is a case of just respects the trend if you are a trend follower.
E) Last Words
I will just finish off this post with three quotes from Peter Brandt which is relevant to the message of this post:
"Keep in mind that there is nothing sacred about a chart pattern. Markets are not obligated to behave in accordance with chart formations."
"What is the best way to trade charts? There is no best way, in my opinion. Even if charting is an approach that makes sense for you, every trader has their own personality, level of risk aversion, and amount of capital."
"Every trader must find an approach that works for them. What works for one trader may not work for others."
XXXXX engagements
Related Topics trader pop mart wey $nvda stocks technology