Many people repeatedly fall into traps in the cryptocurrency market, and the problem lies in focusing on just one timeframe.
Today, I will discuss my commonly used multi-timeframe candlestick trading method, a simple three-step process to grasp direction, find entry points, and determine timing.
1. 4-Hour Candlestick: Determines your major direction for going long or short
This timeframe is long enough to filter out short-term noise, allowing you to clearly see the trend:
• Uptrend: Highs and lows rise together → Buy on dips
• Downtrend: Highs and lows fall together → Sell on rebounds
• Sideways consolidation: Prices fluctuate within a range, making it easy to get whipsawed, so frequent trading is not recommended
Remember this phrase: Following the trend increases your win rate, going against it only leads to giving away money
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 identify support/resistance:
• Approaching trend lines, moving averages, or previous lows indicates potential entry points
• Approaching previous highs, significant resistance, or the appearance of top formations suggests considering taking profits or reducing positions
3. 15-Minute Candlestick: Only for the final 'trigger action'
This timeframe is specifically used to find entry timing, not for trend analysis:
• Wait for key price levels to show small timeframe reversal signals (engulfing, bullish divergence, golden cross) before acting
• Volume must increase; only then is a breakout reliable; otherwise, it may be a false move
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 zone: Use the 1-hour chart to mark support or resistance areas
3. Enter precisely: Use the 15-minute chart to find the final signal for entry
A few additional points:
• If there are conflicting directions across several timeframes, it’s better to stay out and observe rather than take uncertain trades
• Small timeframes are volatile, always use stop losses to prevent being repeatedly taken out
• The combination of trend + position + timing is far more effective than guessing randomly at the charts
I have used this multi-timeframe candlestick method for over 2 years; it is a foundational configuration for stable output. Whether you can use it well depends on your willingness to analyze charts and summarize findings. #加密市场回调 #山寨季何时到来?