In the cryptocurrency world, some people become rich overnight by betting on contracts, while others lose everything by chasing trends. I entered the market with the 180,000 I saved from working, and after 10 years, rolled it to 80 million, never touching contracts, relying solely on understanding the 'trading range.' Recently, the backend exploded: 'Brother Wei, why am I being slammed to the ground by the market every time I follow the signal candlestick?' Today, I'm going to share my deepest secrets, and after reading, you'll understand: the difference between beginners and veterans has never been luck, but whether one knows how to 'borrow the momentum of the range'!
First, let's complain about a painful truth: 80% of beginners are making the same mistake. They are looking for signal candlesticks with a magnifying glass in the wrong cycle, akin to fishing for a needle in the Pacific Ocean. For example: some people focus on the BTC 30-minute chart, at a position with 150 candlesticks away from the previous peak, stubbornly looking for a 'single candlestick reversal signal,' only to be educated by the market; but when switching to the 1-hour chart, there are only 80 candlesticks left from the previous peak, and the same signal directly leads to gains.
My personal iron rule: For large structures with more than 100 candlesticks, don’t get caught up in signal candlesticks; prioritize watching for double tops and bottoms, and head and shoulder patterns. For small structures within 100 candlesticks, signal candlesticks are useful. Experienced traders might rely on their instincts, but beginners must memorize this rule — I’ve seen too many people nitpick 15-minute signals on daily charts and end up doubting life due to losses. This isn’t about a lack of skills; it’s about being on the wrong path.
Let’s discuss some practical tips: In range trading, the most challenging aspect for the mindset is order management. I never recommend holding a full position stubbornly to the top/bottom of the range — last year, a follower went long at the bottom of the ETH range, but when it rose to the middle, they were reluctant to take profits, and as a result, a pullback wiped out their gains. They reached out to me in the middle of the night, crying, asking if they should cut losses. My approach is always: take half the position off at the upper middle of the range, and the remaining half to gamble on the risk-reward ratio. Why? After the middle, the probability of rising or falling is fifty-fifty; taking half the position is securing profits, and even if the remaining half stops out, the overall loss is minimal; if it continues to rise, you can directly capture the gains on the latter half. It's not greed; it's calculated mathematical advantage.
Here's a fun fact: In the range, large bullish and bearish candles are all 'smoke bombs.' Last month, when teaching students about BTC range trading, a large bearish candle suddenly appeared at the top, and some people panicked and went short. I directly told them to reverse and go long — a large bearish candle at the bottom of the range often signals the main force accumulating positions. Sure enough, the price rebounded to the middle the next day, and students who took half their positions for profit made a killing. Remember: within the range, only trust 'short high and long low,' don’t be swayed by daily fluctuations.
Lastly, let’s talk about the most headache-inducing issue: Should you re-enter after a stop loss? My own rule is 'only trade a pattern once.' It’s not that I don’t want to profit; it’s that I fear becoming emotional. If I stop out on a short, even if the exact same signal appears again, I will give up because my mindset is already disturbed. Re-entering can easily turn into 'betting against the market.' Beginners shouldn't follow the big shots by continuously entering; first, practice 'the discipline of single trades' until you master it, which is more important than anything else.
The logic of making money in the crypto world has never been difficult: find the right range, stick to the rules, and don’t be greedy. After reading this, if you’re still operating aimlessly in the middle of the range or can’t distinguish between signal candlesticks and entry candlesticks, comment 'range' below, and I will randomly select 3 followers every Wednesday for a free trade review.
Follow Wei Ge, next time I'll break down '3 golden entry points for false breakouts' with you, so you can steadily profit even in a volatile market. After all, I went from 180,000 to 80 million by repeatedly applying these simple methods to the extreme. In our crypto world, we seek the truth, not illusions.
