Why look at 4-hour, 1-hour, and 15-minute candlesticks?
My friends, after years of struggling in the crypto world, I have seen too many people get rubbed the wrong way by stubbornly sticking to one cycle of candlesticks. Today, I want to share my ultimate trick — the multi-timeframe candlestick trading method, which is just three steps to directly grasp the trend, price points, and timing!
1. 4-hour candlestick: The 'stable anchor' of the trend.
This thing is like a GPS for the crypto world, helping you find the big direction amidst the vast fluctuations. Don't underestimate a single 4-hour candlestick; it filters out the intraday noise, making the trend crystal clear:
Uptrend: Highs and lows rise like steps, and when there’s a pullback, it’s an opportunity for us to make money, so buy decisively!
Downtrend: Highs and lows slide down, and a rebound is like crocodile tears; don’t get carried away—finding opportunities to short is the right way.
Consolidation: Prices jump back and forth within a range; frequent operations at this time just give the exchange transaction fees, so it’s best to lay back and watch the show.
Remember, going with the trend in the crypto world is the way to profit; going against it is just playing with real money as a joke!
2. 1-hour candlestick: Precisely locating the 'battlefield'.
With the big direction set, the 1-hour candlestick serves as our 'battle map'. At this point, focus on finding support and resistance levels:
Trend lines, moving averages, previous lows—these positions act like the 'moat' of the market, often providing support when prices approach, making them potential entry points;
Previous highs and key resistance levels, combined with top formations, signal when to retreat; take profits or reduce positions when necessary.
3. 15-minute candlestick: The 'last second' to pull the trigger.
Do not use the 15-minute candlestick to judge trends; it is only responsible for helping you find the best entry timing! Like a sniper waiting for the prey to show a flaw, we need to wait for these signals:
When key price levels show engulfing patterns, bullish divergences, or golden cross signals, that’s the right time to act;
Pay attention to trading volume! Breakouts without volume are just tricks, and they are likely false breakouts; you must see increased volume before entering the market.
Multi-timeframe coordination practical tips.
Set the direction: First look at the 4-hour chart for trend direction, whether to go long or short is clear;
Draw circles: Mark support and resistance areas on the 1-hour chart to lock in the entry range;
Wait for signals: When the 15-minute chart shows reversal signals, decisively pull the trigger!
Pitfall guide based on blood loss summary.
When different timeframes conflict, don’t force yourself in; staying out of the market is better than losing money;
Shorter timeframes fluctuate quickly, you must set stop losses; otherwise, you may get swept out in minutes;
Trend, position, and timing are all essential; don’t rely on gut feelings and random guessing; using this method is the true way!
I have been using this method for more than two years, and it has become my 'trading muscle memory'. To be honest, there is no trading holy grail; the key is to review and summarize often, turning these methods into your own. If anyone has practical insights, let's chat in the comments, so we can avoid detours in the crypto world together.