Recently, while reviewing my trading records, I realized there's a foolproof yet highly effective approach — sticking to the logic of higher highs and higher lows.

Simply put, an uptrend is characterized by a series of higher highs and higher lows, while a downtrend is the opposite. This isn't a new concept, but very few people can execute it properly. Most traders either overtrade or get thrown off by small fluctuations.

My approach is straightforward and blunt: go long at lows, and if the price breaks below that low, stop out. That's it. The same logic applies to short positions: enter at highs, and exit immediately if the price surpasses the high. No need to look at smaller timeframes or complicated indicators — keep it simple and pure. Of course, if your technical skills are strong, you can optimize entries and exits with smaller timeframes to improve your risk-reward ratio.

I also use the AVWAP tool, which clearly shows the average cost basis of the trend and key support levels. In TradingView, just use the built-in system indicator, setting it at key lows or trend initiation points.

I’ve always believed that the biggest danger in trading is endless chatter. People with chaotic logic tend to mask their ignorance with more jargon. On the other hand, simple and clear logic is the most direct to execute, and it tends to produce more stable profits.

This method works well for mainstream assets like BTC and ETH. Confirming a higher low is one of your best entry signals. After testing this approach in real trading, I can say it truly stands the test of time.