Beginner's Guide: Practical Teaching Plan for Major Cycle Trend Trading

Understand the core principles: Know the underlying logic of "not going against the trend, using the major cycle to set the direction"

Master practical steps: Be able to read weekly/monthly charts, judge trend types, and set operational strategies

Apply independently: Take any K-line chart of a trading pair, judge the trend within 1 minute, and clarify the trading direction

Suitable for complete beginners, traders who can't understand complex indicators, and those who often lose money by "bottom fishing or topping out"

First, understand "Why learn this method"

* Core question: Why do beginners always lose?
* Answer: They focus on daily/hourly charts (small cycles), being fooled by short-term fluctuations (e.g., buying when it looks like it's rising, but actually it's a rebound in a downtrend). Essentially, it's "trading against the trend."

* Benefits of this method:
* Using weekly/monthly charts (large cycles) allows you to skip short-term "noise" and see the true market trend directly (e.g., an uptrend is genuine, a downtrend is genuine).

* No need to calculate or memorize complex indicators, just look at "highs and lows" and "price positions," simple and straightforward.

* Remember one sentence: The major cycle sets the direction; trade with the trend to avoid pitfalls.

Step 1: How to bring up the "weekly/monthly charts"

* Practical steps (using common trading software as an example, all software logic is similar):

* Open the chart of your trading pair (cryptocurrency trading chart), find the "K-line chart" (default is usually daily).

* Find the "cycle switch" button (usually at the top of the K-line chart, labeled "Day/Week/Month" or "1D/1W/1M").

* Click "Week" (preferably view weekly charts), the K-line will change to "one per week"; if unsure, then click "Month" (one per month) to confirm.

* Beginner tips:
* Don't worry about the color of K-lines (red for up, green for down, or vice versa), just focus on the "high and low points of each K-line."

* Zoom out the chart (by sliding the screen or clicking the "zoom out" button), to see at least 6-12 weekly K-lines (half a year to a year of trend), to clearly observe the "waves."

Step 2: How to judge "what kind of trend" in 3 seconds

* Core mantra: Look at highs and lows, categorize into 3 trend types (using weekly chart as an example, same applies to monthly)

Uptrend (can buy long, not short)

How to judge: From left to right, the "high points are getting higher, and low points are getting higher" (e.g., week 1 high at 10 yuan, week 3 high at 12 yuan; week 1 low at 8 yuan, week 3 low at 9 yuan).

Price position: Current price near the recent 1-2 K-line highs, or within the "higher high, higher low" channel.

Downtrend (can short, not buy long)

How to judge: From left to right, the "high points are getting lower, and low points are getting lower" (e.g., week 1 high at 10 yuan, week 3 high at 8 yuan; week 1 low at 9 yuan, week 3 low at 7 yuan).

Price position: Current price near the recent 1-2 K-line lows, or within the "lower high, lower low" channel.

Sideways trend (no long or short)

How to judge: Highs and lows of K-lines fluctuate within a fixed range (e.g., highs always between 10-11 yuan, lows between 8-9 yuan), with no pattern of "getting higher" or "getting lower."

Price position: Current price in the middle of the range, neither up nor down.

* Practical exercises (must do):

* Open weekly charts of 3 different pairs (e.g., one clearly uptrend, one clearly downtrend, one sideways), label them as "uptrend/downtrend/sideways" based on the above standards, and verify your judgment.

Clarify "what to do"

In an uptrend, don't think "it's risen too much and should fall," avoid guessing the top

In a downtrend, don't think "it's fallen too much and should rise," avoid bottom fishing

In sideways trend, wait and see, wait for a breakout before acting, don't guess the direction blindly

Two pitfalls beginners must avoid:

Don't use daily charts to negate weekly charts: For example, if the weekly trend is up, but the daily chart shows a short-term decline, don't think the trend has changed. It's just a short-term correction, still adhere to "long only."

Don't draw conclusions from a single K-line: For example, if the weekly trend is down, but one week closes with a bullish (up) candle, don't think the trend has reversed. Wait until 2-3 weekly candles all show "higher highs and higher lows" before changing your judgment.

Summary

* Core 3 steps: Adjust to weekly chart → judge trend by highs and lows → trade with the trend

* Remember one principle: Don't fight the trend, be a "follower" of the trend

* One sentence mantra: Weekly sets the direction, highs and lows identify the trend, follow the trend to avoid pitfalls