Recently, many fans have been asking me, how to read candlestick charts?

They say that when they look at them, they are often overwhelmed by short-term fluctuations, buying one moment and selling the next, resulting in frequent trades that lead to more losses than gains.

So I will share my commonly used multi-timeframe candlestick trading method.

Through three simple steps, I will help you accurately grasp market direction, identify entry points, and timing.

1. 4-Hour Candlestick: Determine the Major Direction

The 4-hour candlestick period is long enough to filter out short-term noise.

Through this timeframe, you can clearly see the trend:

Uptrend: Highs and lows rising together → Buy on dips

Downtrend: Highs and lows falling together → Short on rebounds

Sideways Range: Prices fluctuate repeatedly within a range; frequent trading is not recommended.

Going with the trend is the way to go; trading against it often leads to losses.

2. 1-Hour Candlestick: Define Key Ranges

After confirming the major trend, the 1-hour candlestick can help you precisely find support and resistance levels.

These positions are your key entry points.

Support Area: Consider entering near trendlines, moving averages, and previous lows.

Resistance Area: When approaching previous highs or significant resistance levels, consider taking profits or reducing positions.

3. 15-Minute Candlestick: Precise Entry Signals

The 15-minute candlestick period is specifically used to find entry timing, rather than to judge trends.

Wait for a reversal signal (engulfing pattern, bullish divergence, golden cross, etc.) at key price levels before acting.

Volume upon breakout: Confirm the trading volume after the breakout to enter; otherwise, you might encounter a false breakout.

Multi-Timeframe Trading Techniques:

Determine Direction: Use the 4-hour chart to confirm whether to go long or short.

Find Entry Zone: Use the 1-hour chart to find support or resistance areas.

Precise Entry: Use the 15-minute chart to identify suitable entry signals.

Remember:

If the directions of several timeframes are inconsistent, it is best to choose to stay out and observe; do not trade without confidence.

Small timeframes fluctuate quickly; remember to set stop losses to prevent being frequently stopped out.

The perfect combination of going with the trend + position + timing is much more stable than guessing wildly while staring at the candlestick chart.

Whether you can do it well depends on whether you are willing to spend more time looking at charts and summarizing experiences.

In trading, the key is patience and strategy.

If you are feeling a bit lost or need more guidance, feel free to reach out to me anytime; I will provide you with a detailed analysis.