As an old player in the market, I find too many people suffer huge losses by only looking at one cycle of candlesticks! Today, I will share my best practices.
The 'multi-cycle trading method' broken down into a beginner-friendly tutorial, easy for novices to understand, suggested to bookmark and review repeatedly
Step one: 4-hour candlestick - first determine the big direction!
This is simply the 'compass' of the trading world 〇
! Filter out intraday noise, the trend is clear at a glance:
V Upward trend: highs and lows rise like climbing stairs, pullbacks are quiet opportunities to pick up chips~
Downward trend: highs and lows continue to slide, rushing in at this time is just giving money to the market, mainly observe!
V Sideways fluctuation: prices bouncing within the box, frequent operations = paying transaction fees to the platform, relaxing is the best option!
. Key point: follow the trend to make profits, operating against the trend is just gambling with your capital!
Step two: 1-hour candlestick - lock in the entry range!
After determining the big direction, use the 1-hour chart to find 'support and resistance levels' ◎^, just like marking a 'safety zone' for trading.
Near previous lows, trend lines, or moving averages, when prices drop to this level, it’s easy to rebound, possibly an entry signal;
Near previous highs or dense trading zones, when prices rise to this level, it's easy to meet resistance, pay attention to take profit or reduce positions~
A small tip: mark these key positions, just like marking 'traffic lights' for the market, don’t rush in!
Step three: 15-minute candlestick - capture the best entry timing!
In this cycle, do not look at the trend, just use it as a 'trigger signal'! Wait for these signals before acting:
V Key price levels showing 'engulfing patterns', 'bottom divergence', or golden cross on moving averages;
V Must pay attention to trading volume! Breakouts without volume are fake moves, volume is reliable~
Wait for signals patiently like a sniper, don't impulsively chase highs and cut losses!
Remember the practical mantra:
1 Determine the bullish or bearish direction on the 4-hour chart, have a mental plan first;
2 1-hour draw support and resistance, define the entry range;
3 Wait for reversal signals on the 15-minute chart, only act when volume increases!
X A bloody summary of the pitfall avoidance guide (must-read!)
! When multiple cycle directions contradict, staying out of the market is better than forcing a trade;
! Small cycle fluctuations are fast, must set a stop loss, don't get swept by back and forth losses;
! Trend + position + timing are all essential, don't operate blindly based on feelings!
I've been using this method for over two years, and now watching the market has become 'muscle memory'~ There is no holy grail in the market, but multi-cycle linkage really can
Avoid 90% of pitfalls! Sisters, how many cycles do you use when watching the market? Let's discuss your practical insights in the comments and trade rationally together.
