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Many people experience similar dilemmas after entering the crypto market—their eyes are glued to the K-line, and minute-to-minute fluctuations can cause emotional swings. Buying in just before a drop, selling right before a surge, the account feels like a roller coaster—exciting but helpless. After repeatedly going through this cycle, they realize that the problem isn't that the market itself is too tricky, but that our observation dimensions are not comprehensive enough.
Today, I want to share a multi-timeframe trading framework. It’s not a secret to make quick money, but if it can help you avoid years of detours, it’s worth it.
**First Layer: Big Cycle Sets the Direction**
The 4-hour chart functions like a navigation system. It doesn’t tell you where the next candle will move, but it clearly indicates the overall direction.
An uptrend is characterized by higher highs and higher lows—like climbing stairs. During this phase, trying to short is basically going against the market. True opportunities appear during pullbacks—entering in alignment with the main trend offers better chances.
A downtrend is the opposite—lower highs and lower lows. Rebounds during this phase are often false signals, and the overall trend remains downward. Trading with the trend rather than guessing bottoms in reverse is the rational choice.
As for sideways consolidation, where prices fluctuate within a range, this is the easiest scenario for most people to make mistakes. My current approach is simple—avoid participation and patiently wait for a clear direction.
The key is that the big cycle determines the overall "momentum." If the daily chart clearly shows a bull market pattern, repeatedly chasing pullbacks on the 5-minute chart will most likely result in being trapped.
**Second Layer: Medium Cycle Finds the Position**
Once the direction is confirmed, the next step is precise positioning. The 1-hour chart is used for this—finding specific bullish and bearish zones.
Support levels usually appear near previous lows, trendlines, or key moving averages (like the 20-day MA). When the price retraces to these levels, it often finds support and bounces—this is a relatively safe zone for long entries.
Resistance levels follow a similar logic—previous highs, descending trendlines, or upper moving averages can act as pressure points for price increases. Recognizing these levels helps determine when to be cautious.
Drawing support and resistance levels essentially creates a clear trading "battlefield"—not entering blindly, but trading within advantageous zones.
**Third Layer: Small Cycle Finds the Rhythm**
With the main trend clear and the medium-term position set, the final step is to use 15-minute or 5-minute charts to grasp the entry timing and rhythm. When the price approaches support or resistance, short-term momentum indicators often provide relatively clear signals.
**The Closed Loop of Core Logic**
The brilliance of this method lies in its progressive relationship: the big cycle tells you the "direction," the medium cycle indicates the "position," and the small cycle reveals the "timing." Combining all three transforms a "futures gambler" into a trader with a structured framework.
Not all market conditions are worth participating in. Sometimes, the best move is to wait—wait for the big cycle to confirm, wait for the price to return to a reasonable level, wait for a genuine opportunity on the small cycle. This patience is often more valuable than blind diligence.