Eight years ago, when I first entered the market, I was always looking at the 1-minute chart, rushing in as soon as I saw a movement. After a few minutes, a pullback would stop me out; after several times, I lost tens of thousands. I almost gave up until a senior told me that my problem was focusing only on one timeframe, which was an eye-opener. Have any of you experienced the same? So today, I’ll share my commonly used multi-timeframe candlestick trading method in three simple steps: grasp the direction, find levels, and time the entries. (I recommend liking and bookmarking to avoid losing it later.) Here comes the valuable content:
1. 4-hour candlestick: Determines your 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 increase simultaneously → Buy on dips.
• Downtrend: Highs and lows decrease simultaneously → Short on pullbacks.
• Sideways fluctuation: The price fluctuates repeatedly within a range, making it easy to get caught out; frequent trading is not recommended.
Remember this: Following the trend gives you a higher probability of winning; going against the trend 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 levels:
• Approaching trend lines, moving averages, or previous lows are potential entry points.
• When approaching previous highs, important resistance, or when top patterns appear, consider taking profits or reducing positions.
3. 15-minute candlestick: 'Determines the entry action.'
This timeframe is only used to find entry opportunities, not for trend analysis:
• Wait for a small timeframe reversal signal (engulfing, bottom divergence, golden cross) at key price levels before taking action.
• When volume is released, a breakout is reliable; otherwise, false moves are likely.
How to coordinate multiple timeframes?
1. First, determine the direction: Use the 4-hour chart to choose whether to go long or short.
2. Find the entry zone: Use the 1-hour chart to outline support or resistance areas.
3. Precise entry: Use the 15-minute chart to find the signal for the final push.
A few additional points:
• If there are conflicting directions across several timeframes, it’s better to stay in cash and observe rather than take uncertain trades.
• Shorter timeframes fluctuate quickly; stop-loss orders are needed to prevent being repeatedly stopped out.
• Following the trend + position + timing combination is much better than blindly guessing from the chart.
I have used this multi-timeframe candlestick method for over 28 years; it is the basic configuration for stable output. Whether you can use it well depends on your willingness to look at the charts more and summarize. If you have any questions, feel free to message me!
