Some fans say they keep losing money trading cryptocurrencies, even though they've watched plenty of technical analyses. As soon as they enter the market, they get stuck.
After reviewing her trading records, I found the problem was focusing on just one time frame. Just like when I first entered the crypto world, I was fixated on the 1-minute candlestick chart; I would jump in at any fluctuation, only to get wiped out by a pullback immediately.
Later, a senior trader enlightened me: if you only look at one time frame, you’re essentially waiting to lose. You need to combine the 4-hour, 1-hour, and 15-minute charts to catch the right trend and find the right entry points.
Start with the 4-hour chart to determine the overall direction; this is the most important. It can filter out short-term noise and help you see the market's larger trend. In an uptrend, wait for a pullback to buy low; in a downtrend, wait for a rebound to short; and during sideways movement, don’t make random trades—it's hard to make money and easy to lose.
Once the overall direction is set, look at the 1-hour chart to confirm support and resistance levels, finding the best entry points. For example, if the price is approaching a previous low or a trend line, you can prepare to enter; if it is nearing a previous high or an important resistance level, you should prepare to take profits or reduce your position.
Lastly, use the 15-minute chart to precisely time your entry; don’t use it to judge the overall trend, just look for short-term reversal signals. If key levels show engulfing patterns, bottom divergences, or golden crosses, you can consider entering. When trading volume increases, breakout signals are more reliable, helping you avoid false breakouts.
The usage is very simple: the 4-hour chart sets the direction, determining whether to go long or short; the 1-hour chart confirms support and resistance; and the 15-minute chart finds the best entry point. Following this method can help you avoid most losses and trade with the trend, entering accurately.
Many people impulsively enter trades without setting stop-losses and can't grasp the market's rhythm. Don’t make the same mistakes I did; look at charts more, summarize more, and execute simple rules well—profiting isn't that hard.
