Why look at 4-hour, 1-hour, and 15-minute candlesticks?

Many people in the cryptocurrency space repeatedly fall into pitfalls because they focus on only one timeframe.

Today, I will discuss my commonly used multi-timeframe candlestick trading method, which involves three simple steps: grasping direction, finding entry points, and 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 and clearly see the trend:

• Uptrend: Higher highs and higher lows → Buy on dips

• Downtrend: Lower highs and lower lows → Sell on rebounds

• Sideways consolidation: Price fluctuates within a range, making it easy to get stopped out; frequent trading is not recommended.

Remember this: Trading with the trend increases your win rate; trading against it will only cost you.

2. 1-hour candlestick: Used to delineate ranges and find key levels

Once the major trend is established, the 1-hour chart can help you identify support/resistance:

• Positions near trend lines, moving averages, or previous lows are potential entry points.

• As you approach previous highs, significant resistance, or a topping pattern, consider taking profits or reducing your position.

3. 15-minute candlestick: Only for the final “trigger action”

This timeframe is specifically for finding entry timing, not for analyzing trends:

• Wait for key price levels to show small timeframe reversal signals (engulfing, bullish divergence, golden cross) before entering.

• Volume must increase; a breakout is only reliable with good volume; otherwise, it may be a false move.

How to coordinate multiple timeframes?

1. First define 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 identify support or resistance areas.

3. Enter precisely: Use the 15-minute chart to find the final trigger signals.

A few additional points:

• If there are conflicting directions across several timeframes, it’s better to stay on the sidelines and not take uncertain trades.

• Small timeframe fluctuations are quick; always use stop-losses to prevent getting repeatedly stopped out.

• A good combination of trend, position, and timing is far superior to blindly guessing while staring at the charts.

I have used this multi-timeframe candlestick method for over 2 years; it is the foundation of my consistent trading setup. Whether you can use it well depends on your willingness to analyze charts and summarize your insights.

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