Recently, while reviewing my trading records, I noticed something quite interesting—if you look at the market from a different perspective and interpret all price movements as “consolidation,” many originally complex market situations suddenly become clear.

For now, I’ll call this approach the “consolidation mindset trading method.” The core logic isn’t complicated: market price fluctuations are like energy in motion; rises and falls are just different expressions of this energy. If you closely observe candlestick charts, you’ll find that whether the market is rising or falling, it’s essentially a series of oscillations—like ocean waves, with crests and troughs.

How do you actually operate with this method? The key is to capture “extreme points.” When the price reaches a clearly defined local high or low (the crest or trough of a wave), that’s when you enter the market, using previous key price levels as your reference for take-profit and stop-loss. The benefit of this approach is: if you’re wrong, your loss is strictly controlled within a small range; if you’re right, you can capture profits from an entire trend segment.

For example, if a certain crypto repeatedly tests a particular price area over a period of time (such as the zones circled in the chart), you set up positions in these key areas and combine them with clear stop-loss lines. Even if your judgment is wrong, each individual loss will be limited. But as long as you catch a few larger swings, your overall account can turn from loss to profit.

This method is quite versatile—it can be used for cryptocurrencies, precious metals, forex, futures, and stocks, because the underlying logic of price fluctuations is universal. For small accounts, this approach is especially friendly because it doesn’t require heavy positions; instead, it achieves compound growth through frequent small stop-losses and occasional large gains.

Of course, this isn’t some holy grail strategy. It requires you to have a basic understanding of market structure, to strictly execute stop-losses, and to have enough patience to wait for the right entry opportunities. High-volatility assets can indeed increase profit efficiency, but only if you keep the cost of each failed attempt under control.

To put it simply, trading is a probability game between “certainly losing small amounts” and “uncertainly winning big.” The consolidation mindset just provides a new way to observe the market—when you stop obsessing over direction and instead focus on capturing the rhythm of price swings, you might just find your own trading tempo.