Why should we look at the 4-hour, 1-hour, and 15-minute K-lines? Many people repeatedly fall into traps in the cryptocurrency circle. The problem lies in only focusing on one cycle.
Today I will talk about the multi-period K-line trading method that I often use. There are three simple steps: grasp the direction, find the point, and set the timer.
1. 4-hour K-line: Determine the general direction of whether you are long or short
This cycle is long enough to filter out short-term noise and clearly see the trend:
• Upward trend: highs and lows rise synchronously → pullback and low absorption
• Downward trend: highs and lows fall synchronously → Rebound and short
• Horizontal fluctuation: the price fluctuates repeatedly in the box, which is easy to be slapped back and forth. Frequent operations are not recommended
Remember one sentence: only by following the trend can you have a winning rate, and going against the trend will only give away money
2. 1-hour K-line: used to draw intervals and find key positions
When the general trend is determined, the 1-hour chart can help you find support/resistance:
• Approaching trend lines, moving averages, and previous lows are potential entry points
• Approaching previous highs, important resistance, and top patterns, you should consider taking profits or reducing positions
3. 15-minute K-line: Only do the final "shooting action"
This cycle is dedicated to finding entry opportunities, not to watching trends:
• Wait for a small cycle reversal signal (engulfing, bottom divergence, golden cross) to appear at the key price, and then take action
• The trading volume is released, and the breakthrough is reliable, otherwise it is easy to make false moves
How to cooperate with multiple cycles?
1. Determine the direction first: use the 4-hour chart to choose whether to go long or short
2. Find the entry area: use the 1-hour chart to circle the support or resistance area
3. Accurate entry: use the 15-minute chart to find the final signal
Add a few points:
• If the directions of several cycles conflict, it is better to wait and see with empty positions, and do not make unsure orders
• Small cycles fluctuate quickly, so stop losses must be used to prevent repeated sweeps
• The combination of trend + position + timing is much better than staring at the chart and guessing
I have used this multi-cycle K-line method for more than 2 years. It is the basic configuration for stable output. Whether you can use it well depends on whether you are willing to look at more pictures and summarize more.
