In the cryptocurrency market, the candlestick chart is one of the core tools for technical analysis. By combining candlesticks of different time frames, one can identify trends, judge buy/sell signals, and manage risks. The following are typical uses and applicable scenarios for candlestick charts of different time periods:

1. Ultra-Short-Term Cycle (Minute Level)

- Common Cycles: 1 minute, 5 minutes, 15 minutes, 30 minutes

- Applicable Scenarios: High-Frequency Trading, Day Trading

- Usage:

1. Capture Short-Term Volatility: The cryptocurrency market is highly volatile; minute-level candlesticks can quickly reflect price changes, suitable for short-term operations.

2. Combined Indicators: Combine with indicators such as RSI, MACD, and Bollinger Bands to find overbought/oversold signals or breakout opportunities.

3. Noise Filtering: Short cycle candlesticks are easily affected by market noise, require the use of trend lines or moving averages (e.g., MA20) to filter out false signals.

- Risk Warning: Must closely monitor the market; high trading frequency may erode profits due to fees and slippage costs.

2. Short-Term Cycle (Hourly Level)

- Common Cycles: 1 hour, 4 hours

- Applicable Scenarios: Swing Trading, Overnight Holding

- Usage:

1. Trend Confirmation: Use 4-hour candlesticks to determine short-term trend direction (e.g., upward channel or head and shoulders pattern).

2. Key Support/Resistance: Develop entry/exit strategies combining Fibonacci retracement and horizontal support/resistance levels.

3. Volume-Price Analysis: Observe changes in trading volume to confirm the validity of price breakouts (e.g., breakout with increased volume).

- Advantages: Balances market noise with trend signals, suitable for capturing trends over hours to days.

3. Medium-Term Cycle (Daily Level)

- Common Cycle: Daily (1D)

- Applicable Scenarios: Trend trading, medium to long-term holding

- Usage:

1. Main Trend Judgment: Daily level is the key cycle for determining market bull/bear status, e.g., using the 200-day moving average (MA200) for long-term support.

2. Pattern Recognition: Identify classic technical patterns (e.g., double bottom, triangle consolidation, cup and handle, etc.).

3. Multi-Indicator Validation: Combine weekly trends and MACD histogram divergence to improve the reliability of trading decisions.

- Suitable Audience: Suitable for investors with limited time, do not need to monitor frequently, focus on trend following.

Four, Long-Term Cycle (Weekly/Monthly Level)

- Common Cycles: Weekly (1W), Monthly (1M)

- Applicable Scenarios: Long-term investment (HODL), macro cycle analysis

- Usage:

1. Market Cycle Positioning: Use the weekly chart to determine the bull/bear cycle of cryptocurrencies (e.g., Bitcoin's halving cycle).

2. Historical Comparison: Compare historical highs/lows to analyze the current price's relative position (e.g., RSI overbought/oversold).

3. Institutional Fund Trends: Breakouts at the monthly level often reflect the layout of large funds (e.g., long-term trend reversals caused by institutional entry).

- Core Value: Filter out short-term volatility noise, focus on long-term value and market structure.

Five, Multi-Cycle Combined Strategy

1. Triple Time Frame Method:

- Advanced Cycle (e.g., weekly): Determine the main trend direction.

- Intermediate Cycle (e.g., daily): Look for trading opportunities.

- Lower Cycle (e.g., 4 hours): Precise entry points.

Example: Weekly shows an upward trend → Daily pulls back to support → Enter when a bullish engulfing pattern appears on the 4-hour chart.

2. Cycle Resonance:

When multiple cycles give the same signal (e.g., both daily and weekly break resistance), the trading win rate significantly increases.

Six, Specificity of the Cryptocurrency Market

1. 24/7 Trading: No market closure, pay attention to volume differences during Asian and European/American trading sessions.

2. High Volatility: Short cycle candlesticks may experience extreme volatility (e.g., spike events), stop-loss settings are necessary.

3. Event-Driven: Major news (e.g., regulatory policies, project upgrades) can instantly change trends, requiring news analysis.

Seven, Precautions

- Avoid Overfitting: The shorter the cycle, the more easily technical indicators can be disturbed by noise, requiring simplified strategies.

- Dynamic Adjustment: The effectiveness of the same cycle may vary in bull and bear markets (e.g., 4-hour charts are more reliable in bear markets).

- Risk Management: Regardless of cycle length, stop-loss and take-profit must be set to control single trade risks (recommended ≤2% of capital).

By flexibly using candlestick charts of different cycles, investors can more accurately grasp the rhythm of the cryptocurrency market. However, note: technical analysis is a probability game, and decisions must be made combining fundamentals (e.g., on-chain data, macroeconomics) and sentiment (e.g., fear and greed index).