Why look at 4-hour, 1-hour, and 15-minute candlesticks? Many people repeatedly fall into pitfalls in the crypto space because they only focus on one timeframe. #币安Alpha上新
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.
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 rising together → Buy on pullbacks
• Downtrend: Highs and lows falling together → Short on rebounds
• Sideways consolidation: Price fluctuates within a range, easily leading to losses, not recommended for frequent trading
Remember this: Following the trend increases your win rate; going against the trend only gives away money
2. 1-hour candlestick: Used to delineate ranges and find key levels
Once the major trend is confirmed, the 1-hour chart helps you identify support/resistance:
• Approaching trend lines, moving averages, and previous lows are potential entry points
• Nearing previous highs, important resistance, or top patterns indicates a need to consider taking profits or reducing positions
3. 15-minute candlestick: Only for the final “trigger action”
This timeframe is specifically used to find entry opportunities, not for trend analysis:
• Wait for small timeframe reversal signals (engulfing, bullish divergence, golden cross) at key price levels before entering
• Increased volume must confirm a breakout; otherwise, it may be a false move
How to coordinate multiple timeframes?
1. Determine the direction: Use the 4-hour chart to decide whether to go long or short
2. Find the entry zone: Use the 1-hour chart to pinpoint support or resistance areas
3. Enter precisely: Use the 15-minute chart to look for the final signals before entering
A few additional points:
• If the directions of multiple timeframes conflict, it’s better to stay out and observe rather than take uncertain trades
• Small timeframes are volatile, always use stop-loss to prevent being repeatedly stopped out
• The combination of following the trend, position, and timing is much better than blindly guessing while staring at the charts
I have used this multi-timeframe candlestick method for over 2 years; it is a stable foundational configuration. Whether you can use it well depends on your willingness to observe more charts and summarize results.
