Crypto trading is actually about a pretty simple thing: trends. When one starts, it usually continues in the same direction. The only problem is that many people don’t know how to distinguish bullish from bearish trends or when a change is imminent.

I didn’t understand this for a long time either. Then I learned to always start with the higher timeframes. What looks wild on the 4-hour chart is often just a small correction on the daily or weekly chart. The larger timeframes set the direction, and the smaller ones help you find the perfect entry.

How do you recognize a bullish trend? Honestly, it’s not complicated. The price simply makes higher highs and higher lows. That’s the sign that it’s going up. If the price breaks through one of these support levels, then the bullish trend is probably over. But as long as that doesn’t happen, you can stay optimistic.

The thing with entries is: Nothing moves in a straight line. There are always setbacks, and that’s often where the best opportunities are. When the price falls to an important level set by the higher timeframe, that can be your signal. The new highs then become your target.

The opposite works just as well. In a bearish trend, you see lower highs and lower lows. If you want to short, you wait for a jump into the upper zone and then look for your short setup. New lows are then your target.

But the trickiest part is the trend reversal. That’s the point where most people lose money. When everyone is bullish and the trend turns, they still hold on to their buys. And conversely, when everyone is pessimistic and it turns bullish, they can’t accept it and sell into the upward trend.

How do you notice that something is changing? With the same method you use for trend detection. If the bullish trend breaks and the price falls below the higher low, that’s your signal. Some take profits then, others open shorts. Depending on how you tick. Conversely, if the bearish trend breaks and new highs appear, the market shifts from bearish to bullish.

It’s really a mindset thing. Be bullish when the trend is bullish. Be bearish when the trend is bearish. And if the trend changes, change your opinion too. That’s the secret. If you can’t do that and stubbornly hold onto your position, you’ll end up losing most of your money. That’s why it’s so important to read the trends correctly and switch quickly when something changes.