In the cryptocurrency world for 6 years, I used to focus only on 1-minute charts, with my heart racing frequently, always caught in the cycle of gains and losses, often buying high or selling low. Later, I met a technical expert who pointed out to me that it was actually that simple. Our problem lay in focusing on just one timeframe. Today, I will talk about my commonly used multi-timeframe candlestick trading method, which consists of three simple steps: grasping the direction, finding entry points, and timing. (I suggest liking and saving this to avoid losing it later) 1. 4-hour candlestick: Determines your overall direction for going long or short. This timeframe is long enough to filter out short-term noise, allowing a clear view of the trend: • Uptrend: High points and low points rising together → Buy on dips • Downtrend: High points and low points declining together → Sell on rebounds • Sideways consolidation: Price fluctuates within a range, making it easy to get whipsawed; frequent trading is not recommended. Remember: Trading with the trend increases the winning rate, while trading against it will only lead to losses. 2. 1-hour candlestick: Used to define ranges and find key levels. Once the major trend is established, the 1-hour chart can help you identify support/resistance: • Near trendlines, moving averages, and previous lows are potential entry points • Approaching previous highs, significant resistance, or when top formations appear, you should consider taking profits or reducing positions. 3. 15-minute candlestick: Only for the subsequent 'entry actions'. This timeframe is specifically used to find entry timing, not to observe trends: • Wait for key price levels to show small timeframe reversal signals (engulfing, bullish divergence, golden cross) before acting • Volume needs to increase for a breakout to be reliable; otherwise, it’s easy to get faked out. 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 the entry area: Use the 1-hour chart to outline support or resistance zones. 3. Precisely enter: Use the 15-minute chart to find the signal for the final entry. Additional points: • If several timeframes show conflicting directions, it’s better to stay in cash and observe, rather than taking uncertain trades. • Small timeframes fluctuate quickly, so it’s necessary to have stop losses to avoid getting repeatedly stopped out. • The combination of trend + position + timing is much stronger than blindly guessing at the charts. I have used this multi-timeframe candlestick method for over 6 years; it is the foundation of stable output. Whether you can use it well depends on your willingness to look at the charts more and summarize.
I am Xiao O, a professional analyst and educator, a mentor and friend on your investment journey! As an analyst, the most basic thing is to help everyone make money. I will help you solve confusion and trapped positions, speaking with strength. When you lose direction and don’t know what to do, follow Xiao O; I will point you in the right direction.
