Guide to Avoiding Traps for Beginners: Multi-Period Trading Method Proven Over Many Years

In the crypto market, newbies often fall into two common traps: Focusing only on a single cycle while overlooking the big picture. Placing orders based on emotions and lacking analysis leads to buying high, selling low, or holding positions against the trend. To avoid becoming a victim of constant fluctuations, it is essential to understand the logic of multi-cycle trading. This method is based on three practical steps: Identify the trend – Identify the price range – Timing the entry.

1. 4-Hour Cycle: “Overall Orientation” to Identify Trends The 4-hour cycle helps to get an overall view of the market before making specific trades. Uptrend: Continuously higher lows → Can open a buy position when the price adjusts near previous lows, in the direction of the market trend. Downtrend: Continuously lower lows → Can consider selling or opening a short position after slight recoveries. Sideways market: Wait for a breakout signal → Temporarily stay out of the market, avoid forced trades. Principle: Determine the trend first, absolutely do not go against the market.
2. 1 Hour Cycle: “Precision Measurement Tool” to Determine Price Area When the trend is clear, it is necessary to find reasonable price areas to enter orders and take profits. Support levels: Previous lows, moving averages, trendline. Resistance levels: Previous highs, strong resistance areas, price accumulation zones. Profit management: Pre-determine take profit or stop loss levels to avoid panic during market fluctuations. Principle: Understand the target price range to make decisions not based on emotions.
3. 15-Minute Cycle: “Decision Point” to Enter a Trade The 15-minute cycle focuses on selecting the precise timing: Only act when a clear reversal signal appears at important price levels. Or when trading volume increases significantly to confirm the likelihood of a trend break. If there is no signal yet, patiently wait, do not rush to place orders. Principle: Enter a trade only when there is a confirmation signal, avoid jumping in early or based on intuition.
4. Closed Transaction Cycle Multi-cycle trading logic operates in loops: 4-hour cycle ( determines the trend ) → 1-hour cycle ( determines the price range ) → 15-minute cycle ( waits for entry signal ) Applying this method helps: Trade based on fundamentals, avoid emotional decisions. Optimize entry and exit points. Reduce the risk of being “harvested” by short-term market fluctuations.