In the 9 years of the cryptocurrency world, I used to only focus on the 1-minute chart, my heart racing frequently, always caught in the anxiety 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 quite simple; our problem was 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 direction, finding key levels, and timing.
1. 4-Hour Candlestick: Determine the major direction for going long or short.
This timeframe is long enough to filter out short-term noise and clearly see the trend:
• Uptrend: Highs and lows rise together → Buy on dips
• Downtrend: Highs and lows fall together → Short on rebounds
• Sideways consolidation: Prices fluctuate within a range, making it easy to get whipsawed; frequent trading is not recommended.
Remember this: Following the trend increases your win rate; 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 confirmed, the 1-hour chart can help you find support/resistance:
• Approaching trend lines, moving averages, and previous lows are potential entry points.
• Approaching previous highs, important resistance, or the appearance of top formations signals to consider taking profits or reducing positions.
3. 15-Minute Candlestick: Only for the subsequent 'entry actions'.
This timeframe is specifically used to find entry opportunities, not to observe trends:
• Wait for key price levels to show small timeframe reversal signals (engulfing, bottom divergence, golden cross) before acting.
• Volume must increase for a breakout to be reliable; otherwise, it can easily be a false move.
How to combine multiple timeframes?
1. First, determine the direction: Use the 4-hour chart to decide whether to go long or short.
2. Find the entry zone: Use the 1-hour chart to mark out support or resistance areas.
3. Precise entry: Use the 15-minute chart to find the last signal to enter.
A few additional points:
• If there is a conflict in direction across several timeframes, it is better to stay sidelined and not take uncertain trades.
• Small timeframes have quick fluctuations; it is necessary to have stop-losses to prevent being repeatedly stopped out.
• The combination of trend + position + timing is much stronger than blindly guessing at the chart.
I am now in a much better place; making profits has become the norm. Yesterday, I had my fans place buy orders at $SOON 0.4, and last night I provided the opportunity, which unsurprisingly surged to 0.5 this morning, successfully capturing a 25% increase!
To establish yourself in this market, if you are like my former self and want to break free from being a retail trader, feel free to talk to me.
#加密总市值创历史新高 $MYX
