This research addresses the challenge of characterizing the evolution of traffic states during peak hours in heterogeneous road networks by proposing a timing sequence division method based on the hysteresis phenomenon observed in the Macroscopic Fundamental Diagram (MFD). Firstly, the concept of a “virtual closed area” under supply-demand equilibrium is introduced to define a controllable network unit with clear data boundaries for analysis. The core features of the hysteresis phenomenon in the MFD are then analyzed, demonstrating its intrinsic relationship with the formation, persistence, and dissipation of regional traffic congestion. This relationship is validated using simulation data from the Qingyang District road network in Chengdu and empirical time-series data from related studies. The hysteresis is regarded and analyzed as a network level shockwave. Such analysis confirms that the shape and position of the hysteresis loop effectively reflect network operational efficiency. Building on this, a timing sequence division method is proposed, segmenting the peak period into four distinct stages including “Unblocked,” “Low Speed,” “Congested,” and “Recovery”, which is based on the corresponding rates of change of network occupancy and weighted flow. This method clearly delineates the dynamic transition of traffic states in heterogeneous networks. It provides a theoretical foundation for implementing time-stage-specific and refined congestion management strategies. Future research will explore network congestion prediction based on the temporal characteristics of the hysteresis phenomenon.