I just looked at charts again and realized how important it is to read trends correctly. In the crypto market, not much happens by chance — when a trend starts, it usually maintains its direction. That’s why it’s worth the effort to spot it early.

Let’s start with the uptrend. When it’s bullish, you always see higher highs and higher lows. That’s your signal that the direction is correct. The trick: look at larger timeframes like daily or weekly charts. Whatever happens on smaller timeframes ultimately follows the big picture. Use the movements in the smaller timeframe to enter your setup in the larger one.

Where do you get in? Nothing goes straight up. There are always pullbacks — on small timeframes, it looks brutal, but on the daily, it’s just consolidation. I’ve seen this many times: a 32% pullback looks like nothing on the daily, but on the 4-hour chart, you see the drama. When the price falls to the key zone (the previous higher low), that can be your entry point. Target: new highs.

In a bearish trend, it’s the other way around. Lower highs and lower lows — that’s your sign that the trend is declining. If you want to short, you use the same method: wait until the smaller timeframe gives you a jump to the lower high zone of the larger timeframe. Look for triggers, then enter — target new lows.

But here’s where it gets interesting: no trend lasts forever. And that’s exactly where most traders lose money. When it was bullish and suddenly isn’t anymore, many don’t accept it — they keep buying even as signs change. The same applies in reverse: if it was bearish, turns bullish, but they keep shorting.

You recognize trend reversals with the same strategy. When the uptrend breaks, the price falls below the higher low — that’s your signal. Some take profits there, others open shorts. It depends on how you trade. In a downtrend, it’s the opposite: when it surpasses the lower highs, the trend shifts from bearish to bullish.

The most important thing: stay with the trend. Be optimistic when the trend is optimistic. Be pessimistic when it’s bearish. And if the trend turns, go with it. That’s really the difference between surviving and failing as a trader.