Many people lose money, not because their skills are insufficient, but because their minds are trapped by short-term fluctuations. I used to be like that—constantly watching 5-minute K-lines to chase gains and cut losses, only to be severely taught a lesson by the big trend. Later, I paid a lot of tuition fees to figure it out: only by using a combination of 4-hour + 1-hour + 15-minute charts can trading shift from "gambling with luck" to "trading with real rhythm." Today, I’m sharing these hard-earned insights to hopefully save a few people's principal.

**The first thing to watch: The 4-hour chart is the real navigator**

What is the 4-hour chart for? Filtering out useless information. Cryptocurrency markets are inherently volatile; a single news event can cause short-term charts to jump wildly. But the 4-hour chart is different—it can tell you whether you're climbing uphill or going downhill.

During an uptrend, the highs are getting higher, and the lows are also getting higher (like climbing stairs). At such times, don’t get itchy to short; every pullback is actually a good opportunity to get in.

In a downtrend, the highs and lows are all moving downward (like sliding down a slide). Rebounds may look attractive, but they are traps. Waiting for a rebound to short is the way to go.

For sideways markets, where prices fluctuate within a range, this kind of trend is the most annoying. My approach is to simply ignore it—absolutely avoid getting repeatedly caught in such movements.

Honest truth: If you can’t understand the direction on the 4-hour chart, don’t open a position. Trading against the big trend is like rowing a small boat against a waterfall—money is just wasted.

**The second thing to highlight: The 1-hour chart helps find "entry points"**

Once the trend is clear, the next step is to know where to act safely. At this point, the 1-hour chart acts like a magnifying glass, clearly showing support and resistance levels.

Support levels are usually at trend lines, moving averages (like MA20), or previous lows. When the price drops to these levels, it’s likely to bounce back, making it suitable for long entries. Bitcoin and ETH have validated this rule at multiple key levels over the past two years.

Resistance levels are the points where the price struggles to break through when trying to go higher. These are critical decision points—either short here or watch if it can break through effectively.