Why look at 4-hour, 1-hour, and 15-minute candlesticks?

Many people in the cryptocurrency space repeatedly fall into traps, and the problem lies in focusing on only one timeframe.

Today, I will discuss my commonly used multi-timeframe candlestick trading method, which consists of three simple steps: grasping the direction, finding entry points, and timing the trade.

1. 4-hour candlestick: Determines your major direction for going long or short

This timeframe is long enough to filter out short-term noise and clearly see the trend:

• Uptrend: Highs and lows are rising together → Buy on dips

• Downtrend: Highs and lows are lowering together → Short on rebounds

• Sideways fluctuation: Prices oscillate within a range, making it easy to get faked out; frequent trading is not recommended.

Remember this: Trading with the trend increases your win rate; trading against the trend only leads to losses.

2. 1-hour candlestick: Used to delineate ranges and find key levels

Once the major trend is established, the 1-hour chart can help you identify support/resistance:

• Approaching trendlines, moving averages, and previous lows indicates potential entry points.

• Approaching previous highs, significant resistance, or the appearance of topping patterns means you should consider taking profits or reducing your position.

3. 15-minute candlestick: Only for the final 'trigger action'

This timeframe is specifically for finding entry opportunities, not for observing trends:

• Wait for key price levels to show a small cycle reversal signal (engulfing, bullish divergence, golden cross) before making your move.

• Volume must increase; only then is a breakout reliable; otherwise, it’s easy to get faked out.

How to coordinate multiple timeframes?

1. First determine the direction: Use the 4-hour chart to decide whether to go long or short.

2. Find the entry area: Use the 1-hour chart to outline support or resistance zones.

3. Precisely enter: Use the 15-minute chart to look for the final entry signals.

A few additional points:

• If there are conflicting directions across several timeframes, it's better to stay out and observe rather than taking uncertain trades.

• Small timeframes fluctuate quickly; always use stop-losses to prevent repeated losses.

• A good combination of trend, position, and timing is much more effective than blindly guessing at the chart.

I have been using this multi-timeframe candlestick method for over 2 years; it is a foundational configuration for stable output. Whether you can use it well depends on your willingness to look at charts and summarize your findings.