Why look at the 4-hour, 1-hour, and 15-minute candlesticks for trading?
Many people keep making mistakes in the cryptocurrency market because they focus only on one timeframe.
Today, I will explain my commonly used multi-timeframe candlestick trading method in three simple steps: grasp the direction, find entry points, and determine timing.
1. 4-hour candlestick: Determines your overall direction for going long or short
This timeframe is long enough to filter out short-term noise and clearly see the trend:
Upward trend: Higher highs and higher lows → Buy on dips
Downward trend: Lower highs and lower lows → Short on rebounds
Range-bound: Prices fluctuate within a box, making it easy to get whipsawed; frequent trading is not recommended.
Remember this: Only trade with the trend for a higher win rate; going against the trend will only lead to losses.
2. 1-hour candlestick: Used for identifying ranges and key levels
Once the major trend is established, the 1-hour chart helps you find support/resistance:
Approaching trend lines, moving averages, and previous lows are potential entry points.
When nearing previous highs, important resistance, or the emergence of top formations, consider taking profits or reducing positions.
3. 15-minute candlestick: Only for the final 'trigger action'
This timeframe is specifically for finding entry timing, not for observing trends:
Wait for a small timeframe reversal signal (engulfing, bottom divergence, golden cross) at key price levels before entering.
Volume needs to increase for a breakout to be reliable; otherwise, false moves are likely.
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 entry zones: Use the 1-hour chart to outline support or resistance areas.
3. Enter precisely: Use the 15-minute chart to find the final entry signal.
A few additional points:
If the directions of multiple timeframes conflict, it’s better to stay out and observe than to trade without confidence.
Small timeframes fluctuate quickly; always set a stop loss to prevent being repeatedly stopped out.
The combination of trend + position + timing is much more effective than guessing on the charts.
I have used this multi-timeframe candlestick method for over 5 years; it is a stable foundational configuration for consistent output. Whether you can use it effectively depends on your willingness to analyze charts and summarize findings.
Start your daily trading and continue to profit; seize the opportunity!!!