Some time ago, an engineer shared his trading transformation: he only made 3 trades in an entire quarter, all profitable. This guy used to be a trading maniac, entering and exiting more than 20 times daily, but after about a year, he wiped out half of his position. Now? He strictly follows the discipline of "do not open a position without three confirming signals," using $3,000 as capital to grow to $180,000. He also感慨—finally turning trading from reckless activity into a technical skill.

This case hits the root cause of retail traders' losses: most people treat "trading frequency" as a "money-making tool." Little do they realize that overtrading is a wealth grinder—transaction fees eat into profits, emotional pollution cloud judgment, and capital is repeatedly worn down. Truly skilled traders spend most of their time waiting, not rushing to act.

The so-called "Trident Confirmation Method" isn't complicated; its core logic is simple: only open positions when signals from price, volume, and market structure align and resonate. This filters out over 90% of noise fluctuations, ensuring each trade is based on probability and favorable odds.

**First Layer: The Qualitative Change of Breakouts**

Not every breakout counts. It must be a high or low level repeatedly tested at least 3 times on the daily chart, and after breaking out, the price enters a new range that hasn't been reached for months. The key is that the closing price must stay above (or below) a critical previous level—no stability, no action. The goal is to catch those qualitative changes in market conditions.

**Second Layer: Authentic Volume Backing**

At the breakout, volume must increase to at least 150% of the average volume of the past 20 days, indicating big funds are entering. If within the next two or three days there's a pullback, volume should shrink below the daily average, confirming the selling pressure has exhausted. This combination helps you avoid false breakouts.

**Third Layer: Market Structure Resonance Support**

The trend of a single asset must be in sync with its leading sector and the overall Bitcoin trend. If it moves against the trend, losses are almost certain. Check sector strength and whether BTC is in consolidation or an uptrend—this is crucial. All three signals must be present within two weeks; missing any one means no trade.

When all three confirming signals are in place, how should you allocate your position? Use a "20% exploratory position + 40% main position" approach—first test the waters with the exploratory position, with a stop loss 3% below the breakout point. Once confirmed to stabilize, add the main position when a new high is made after the breakout, moving the stop loss up to the cost basis of the exploratory position. This way, you can hold a position without losses. Exit signals are based on the daily trendline: if broken, take profit on the main position; if key levels are breached, clear the entire position. No market predictions—just follow the signals.

Ultimately, the essence of trading is patience and waiting, not frequent activity. Missing 90% of invalid opportunities allows you to seize the truly core trades. The power of this method lies in helping you control your fingers, forcing you to focus on research and observation.

Markets fluctuate daily, but protecting your capital and maintaining your original intention are the keys to cycling through different phases. When the next market cycle arrives, disciplined traders tend to survive longer and perform better.