I have been in the cryptocurrency space for 10 years, going from an initial loss of over 1 million RMB to now gaining tens of millions RMB! Through countless losses and gains, I have summarized some experience and strategies, which allowed me to say goodbye to the fate of being a 'retail investor.' This is all practical advice for making a living from trading stocks, shared with those destined to receive it.
Let's talk about why we need to look at 4-hour, 1-hour, and 15-minute candlestick charts? Many people keep stepping into pitfalls in the cryptocurrency space because they only focus on one time frame.
Today, I will discuss my commonly used multi-timeframe candlestick trading method, which consists of three simple steps: grasp the direction, find the entry point, and time the trade. #币安Alpha上新
1. 4-hour candlestick: Determines your overall direction for long or short positions.
This time frame is long enough to filter out short-term noise, allowing you to see the trend clearly:
• Uptrend: Highs and lows rising together → Buy on dips
• Downtrend: Highs and lows falling together → Short on rebounds
• Sideways consolidation: Price fluctuates within a range, making it easy to get whipsawed; frequent trading is not recommended.
Remember this: Trading with the trend increases your win rate; trading against it will only lose you money. #大而美法案
2. 1-hour candlestick: Used to delineate ranges and find key levels.
Once the major trend is determined, the 1-hour chart can help you find support/resistance:
• Near trend lines, moving averages, and previous lows are potential entry points.
• Approaching previous highs, important resistance, or the appearance of top patterns means you should consider taking profits or reducing positions.
3. 15-minute candlestick: Only for the final 'trigger action.'
This time frame is specifically used to find entry points, not to observe trends:
• Wait for key price levels to show small cycle reversal signals (engulfing, bullish divergence, golden cross) before taking action.
• Look for increased trading volume; only trust breakouts if volume supports them, otherwise, they may be false moves.
How to combine multiple timeframes? #Solana质押型ETF
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 circle support or resistance areas.
3. Enter precisely: Use the 15-minute chart to find the final entry signal.
A few additional points:
• If the directions of several timeframes conflict, it’s better to stay out and observe rather than take uncertain positions.
• Small timeframes are volatile; always use stop-losses to prevent being repeatedly stopped out.
• Combining trend, position, and timing effectively is much better than blindly guessing by staring at the chart. $BTC
I have used this multi-timeframe candlestick method for over 4 years; it is the foundation of stable output. Whether you can use it well depends on your willingness to look at charts and summarize more.