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As a trader, the most common frustration is not knowing how to judge market trends. Actually, this problem isn't that complicated; with the right tools, you can achieve twice the result with half the effort.
**Set the Direction on the Major Cycle**
Open the candlestick chart and switch to the 1-hour cycle to observe the overall direction. The most direct signal is the arrangement of moving averages—if 5 moving averages are neatly aligned upward and the price is steadily above all of them, even if there is a pullback, it won't break below the lowest line, indicating a healthy upward trend. Conversely, if all moving averages are aligned downward and the price has been operating below the moving averages for a long time, with rebounds unable to reach the top line, it’s a clear downward trend. Another situation is when the moving averages are tangled together, and the price fluctuates up and down without a clear direction; in this case, it’s not suitable to follow the trend.
**Find Opportunities on the Small Cycle**
After confirming the major trend, switch to the 15-minute cycle to look for specific entry and exit points. In an uptrend, each time the price pulls back near previous lows, it rebounds, and the lows are gradually raised, indicating solid support at the bottom. Building positions near support levels at this time is relatively safer. In a downtrend, the opposite applies: rebounds to previous highs turn around, and the highs gradually decline. Pressure levels are good opportunities for shorting.
**Use Volume to Confirm**
Don't ignore the role of volume. In an uptrend, the price should rise with increasing volume, and during pullbacks, volume should decrease. This indicates strong buying power and a reliable trend. In a downtrend, volume increases during declines and decreases during rebounds, showing that sellers are in control. If volume fluctuates unpredictably without a clear pattern, be cautious as the trend may be about to change.
**Key Points**
Avoid overtrading. As long as the major cycle moving averages are not disrupted and the price hasn't effectively broken below key support levels, don’t constantly worry about where the top and bottom are—such predictions often lead to losses. Refine this method and repeatedly test it in practice; profits will naturally follow.