Can you make big money in the crypto world? Of course. The key is to learn how to read trends and find the market rhythm.

Many beginners lose money not because they are wrong about the direction, but because they don't understand what market condition they are trading in. Today, I will break down a straightforward and effective trend analysis method.

**Step 1: Look at the overall direction**

Open the candlestick chart and set it to a 1-hour timeframe. Focus on 5 moving averages.

If all 5 moving averages are rising steadily and the price is firmly above the moving averages, even during a pullback, as long as it doesn't break below the lowest one, this is a standard uptrend. Conversely, if all moving averages are sloping downward and the price is constantly below them, with rebounds not surpassing the highest one, this indicates a downtrend.

Another situation: the moving averages are tangled together, and the price jumps up and down erratically. This is called consolidation. Consolidation phases are tricky; it's best to stay on the sidelines.

**Step 2: Look at the details**

Once the overall direction is confirmed, switch to a 15-minute timeframe to find entry points.

In an uptrend, each pullback near previous lows is followed by a rebound, and the lows are getting higher each time, indicating a healthy trend. When the price pulls back to a support level, it's a good entry opportunity.

In a downtrend, the opposite applies: each rebound near previous highs results in a reversal downward, and the highs are getting lower each time. When the price rebounds to a resistance level, consider shorting.

The logic is simple: in an uptrend, lows should not be broken; in a downtrend, highs should not be broken. As long as these conditions hold, the trend remains alive.

**Step 3: Look at volume**

Many people only watch the price, but volume is actually the true test of a trend.

In an uptrend, volume increases during upward moves and decreases during pullbacks, indicating solid buying pressure and that the main players haven't exited, so the trend is stable. Conversely, if volume increases during declines and decreases during rebounds, it shows strong selling pressure, making the trend harder to reverse.

The most dangerous situation is volume fluctuating wildly without pattern, which often signals a potential trend reversal, so stay alert.

**Final advice**

Trends are not that complicated. Don't always think "Is this the top?" or "Is this the bottom?" As long as the major moving averages on the higher timeframe are stable and the price hasn't broken key support levels convincingly, trade according to the trend.

The market is always there, and opportunities will keep recurring. No need to guess; follow the trend, and your risk will naturally be lower.