#突破交易策略 In the cryptocurrency world for 9 years, I once only focused on the 1-minute chart, my heart racing frequently, always fluctuating between gains and losses, often buying high or selling low. Later, I met a technical expert who pointed out to me that it was actually simple; our problem was focusing on just one timeframe. Today, I will talk about my commonly used multi-timeframe candlestick trading method, which involves three simple steps: grasping direction, finding levels, 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 trends:
• Uptrend: High points and low points rising together → Buy on dips.
• Downtrend: High points and low points falling together → Sell on rebounds.
• Sideways movement: Prices fluctuate within a range, easy to get whipsawed, not recommended for frequent trading.
Remember this: Following the trend increases your probability of success; going against it will only lead 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 find support/resistance:
• Approaching trend lines, moving averages, previous lows are potential entry points.
• Approaching previous highs, important resistance levels, or top formations means it's time to consider taking profits or reducing positions.
3. 15-minute candlestick: Only for making the 'entry move' later.
This timeframe is specifically used to find entry timing, not for trend analysis:
• Wait for key price levels to show small timeframe reversal signals (engulfing, bottom divergence, golden cross) before acting.
• Volume should increase; only then is a breakout reliable; otherwise, it may be a false move.
How to coordinate multiple timeframes?
1. First determine direction: Use the 4-hour chart to decide whether to go long or short.
2. Find entry zones: Use the 1-hour chart to outline support or resistance areas.
3. Precise entry: Use the 15-minute chart to find the final signal to enter.
A few additional points:
• If the directions of several timeframes conflict, it’s better to stay out and observe rather than take uncertain trades.
• Small timeframes fluctuate quickly; it's necessary to set stop-losses to avoid being repeatedly taken out.
• Combining trend-following, levels, and timing is much more effective than blindly guessing on the charts.
I am no longer who I used to be; making profits is just the norm. If you, like my former self, want to escape your 'chives' nature in this market, feel free to talk to me.