CYF-羽峰
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Why pay attention to the 4-hour, 1-hour, and 15-minute candlesticks?
Many people often hit walls in the cryptocurrency market simply because they focus on a single timeframe. Below, I will explain my commonly used multi-timeframe candlestick trading method, which consists of three steps: grasp the direction, find the key points, and determine the timing.
1. 4-Hour Candlestick: Determine the Major Direction
This timeframe is long enough to filter out short-term noise and clarify the trend.
- Uptrend: Higher highs and higher lows, buy on dips.
- Downtrend: Lower highs and lower lows, sell on rebounds.
- Sideways: Price oscillates within a range; avoid frequent trades, as trading with the trend increases win rate.
2. 1-Hour Candlestick: Identify Ranges and Key Levels
Once the major trend is established, use it to find support/resistance levels. Approaching trend lines, moving averages, previous lows, etc., are potential entry points; nearing previous highs, significant resistance, or current top patterns, consider taking profits and reducing positions.
3. 15-Minute Candlestick: Determine Entry Timing
This timeframe specifically looks for entry timing, not trend direction. Key price levels show small timeframe reversal signals (engulfing, bottom divergence, golden cross), and when accompanied by volume, take action when a breakout is reliable.
Multi-Timeframe Combination Method
1. Use the 4-hour chart to determine bullish or bearish direction.
2. Use the 1-hour chart to identify support or resistance zones.
3. Use the 15-minute chart to look for entry signals.
Additional Key Points
1. If there is a conflict in timeframe directions, stay in cash and observe.
2. Small timeframe fluctuations are fast; set stop losses.
3. Combining trend following, position selection, and timing is stronger than random guessing. Look at charts more often to summarize and effectively use this stable trading method.
Many people often hit walls in the cryptocurrency market simply because they focus on a single timeframe. Below, I will explain my commonly used multi-timeframe candlestick trading method, which consists of three steps: grasp the direction, find the key points, and determine the timing.
1. 4-Hour Candlestick: Determine the Major Direction
This timeframe is long enough to filter out short-term noise and clarify the trend.
- Uptrend: Higher highs and higher lows, buy on dips.
- Downtrend: Lower highs and lower lows, sell on rebounds.
- Sideways: Price oscillates within a range; avoid frequent trades, as trading with the trend increases win rate.
2. 1-Hour Candlestick: Identify Ranges and Key Levels
Once the major trend is established, use it to find support/resistance levels. Approaching trend lines, moving averages, previous lows, etc., are potential entry points; nearing previous highs, significant resistance, or current top patterns, consider taking profits and reducing positions.
3. 15-Minute Candlestick: Determine Entry Timing
This timeframe specifically looks for entry timing, not trend direction. Key price levels show small timeframe reversal signals (engulfing, bottom divergence, golden cross), and when accompanied by volume, take action when a breakout is reliable.
Multi-Timeframe Combination Method
1. Use the 4-hour chart to determine bullish or bearish direction.
2. Use the 1-hour chart to identify support or resistance zones.
3. Use the 15-minute chart to look for entry signals.
Additional Key Points
1. If there is a conflict in timeframe directions, stay in cash and observe.
2. Small timeframe fluctuations are fast; set stop losses.
3. Combining trend following, position selection, and timing is stronger than random guessing. Look at charts more often to summarize and effectively use this stable trading method.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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