“Look at the big picture, act on the small details.” Find direction in the long cycle and find entry points in the short cycle.

The significance of doing this is that it can magnify the risk-reward ratio, allowing us to earn more profit, and it can also improve the utilization of funds, achieving multiple benefits at once.

Many people complicate the concept of looking at the big picture and acting small, but it can be summed up in one sentence: find a direction in the long cycle and find a method to enter the market in the short cycle.

The trend direction in the long cycle is clear, and the market space is large; the stop-loss space for entry signals in the short cycle is small. "Small stop-loss + large profit" is the trading result we dream of.

In fact, trading is very similar to climbing a mountain. We are very clear that our goal in climbing is to reach the top, but we will inevitably encounter gentle slopes and steep slopes along the way, and the difficulty of climbing varies.

Gentle slopes are like good market conditions, where we can pick up speed and make some profits. In steep areas, we need to slow down and conserve energy to push through the next gentle slope.

If we release all our energy regardless of gentle or steep slopes at the beginning, we may not have the strength to reach the top.

Therefore, in trading, when the market is good, we should push for profits, and when the market is not so good, we should avoid making mistakes and strictly control losses, because our ultimate goal is to reach the top, not to cry halfway up!

Looking at the big cycle is to determine the direction. There are many methods to determine the direction using technical standards; the key is to choose indicators you are most familiar with, trade the types of markets you know best, and focus on the large cycles you are most confident in.

Trading in the small cycle means entering orders from the small cycle and finding a technical standard for opening positions in a small cycle.

The same principle applies; everyone can choose a method for opening positions that matches their own small scale based on the indicators they grasp and their accustomed technical standards.

Here is a set of parameters for the combination of large and small cycles for reference.

(1) Short-term (swing) trading: Look at 1 hour for the large cycle, 5 minutes for the small cycle.

(2) Medium-term trading: Look at 4 hours for the large cycle, 15 minutes for the small cycle.

(3) Long-term trading: Look at daily for the large cycle, 1 hour for the small cycle.

(4) Day trading: Look at 15 minutes for the large cycle, 1 minute for the small cycle (this trading model is relatively aggressive, so be sure to pay attention to risk).