At the beginning of 2015, I unexpectedly encountered cryptocurrencies.
During the bull market of 2017-2018, I invested 60,000 and eventually made over a million.
In the bull market of 2020-2021, I relied on almost 10 million, with a maximum floating profit of over 20 million.
Currently, I am still making money through crypto trading; once you have an epiphany in trading, it feels like you are on autopilot.
At the end of last year, I played with 200,000, and now it’s 20 million, easily achieving a hundred-fold profit (suitable for everyone).
A new round of bull market for cryptocurrencies is about to kick off, and the goal of this round is to achieve true financial freedom.
Many people repeatedly fall into traps in the crypto world because they only focus on one cycle.
Today I will discuss my commonly used multi-timeframe candlestick trading method, which consists of three simple steps: grasping the direction, finding the points, and timing.
One, 4-hour candlestick: determines your major direction for going long or short.
This cycle is long enough to filter out short-term noise and clearly see the trend:
1. Upward trend: highs and lows rise together → buy on dips.
2. Downward trend: highs and lows decrease together → short on rebounds.
3. Sideways consolidation: prices fluctuate repeatedly within a box, making it easy to get whipsawed, so frequent operations are not recommended.
Remember this: Following the trend has a higher win rate; going against it only gives away money.
Two, 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:
1. Locations close to trend lines, moving averages, and previous lows are potential entry points.
2. When approaching previous highs, important resistance, or when top patterns appear, consider taking profits or reducing positions.
Three, 15-minute candlestick: only make the final ‘trigger action.’
This cycle is specifically for finding entry opportunities, not for observing trends:
1. Wait for a small cycle reversal signal (engulfing, bottom divergence, golden cross) to appear at key price levels before taking action.
2. When volume comes out, only then is a breakthrough reliable; otherwise, it’s easy to create false moves.
How to coordinate multiple timeframes?
1. First, set the direction: use the 4-hour chart to choose whether to go long or short.
2. Find the entry area: 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 last ‘trigger.’
Add a few points:
1. If multiple cycles conflict in direction, it's better to stay in cash and observe rather than making uncertain trades.
2. Small cycles fluctuate quickly; always use a stop-loss to prevent being repeatedly stopped out.
3. Combining trend, position, and timing is much better than blindly guessing at the chart.
Always remember one thing: ‘No one is 100% correct.’
We can only do our best to analyze and then take the stop-loss.
If you make a mistake, review why you chose incorrectly and where the mistake lies.
Do more reviews.
Trading has no skills.
This multi-timeframe candlestick method, which I have used for over two years, is a stable output's basic configuration. Whether you can use it well depends on whether you are willing to look at the charts more and summarize more.
If you plan to stay in the crypto space for the next three years, intending to treat trading as a second career, you must read these twelve iron rules; they are essential for trading and making a living, and it's recommended to save them!
One, divide your funds into five parts, and only enter with one-fifth each time! Control a 10% stop-loss; if you make one mistake, you only lose 2% of the total funds, and if you make five mistakes, you only lose 10% of the total funds. If you're right, set a take-profit at more than 10%. Do you think you will still be stuck?
Two, how to further increase the win rate? Simply put, it's two words: follow the trend! In a downtrend, every rebound lures buyers, while in an uptrend, every drop creates a golden opportunity! Do you think it's easier to make money by catching the bottom or by buying low?
Three, only trade in upward trending coins, as this has the highest chance of success and saves time. When the 3-day line turns upward, it indicates a short-term rise; when the 30-day line turns upward, it indicates a medium-term rise; when the 84-day line turns upward, it indicates a main upward wave; and when the 120-day moving average turns upward, it indicates a long-term rise!
Four, avoid cryptocurrencies that have surged rapidly in the short term, whether mainstream or altcoins; very few coins can have several waves of main upward trends. The logic is that it is difficult for a coin to continue rising after a short-term surge. When it stagnates at a high level, it will naturally decline later on; this is a simple principle, yet many still want to take a gamble.
Five, don’t put all your eggs in one basket: even if you have 100,000 at hand, they won’t all be invested in one cryptocurrency. They will be spread out so that if one drops, they won't lose everything.
Six, you can use MACD to determine entry and exit points; if the DIF line and DEA form a golden cross below the 0 line and break above the 0 line, it is a solid entry signal. When MACD forms a death cross above the 0 line and moves downwards, it can be seen as a signal to reduce positions.
Seven, I don’t know who invented the term ‘averaging down,’ but it has caused many retail investors to stumble and suffer huge losses! Many people keep averaging down as they lose, which is the biggest taboo in trading and puts themselves in a dead end. Remember, never average down when in loss, but add to your position when in profit.
Eight, volume and price indicators are paramount; trading volume is the soul of the crypto world. Pay attention to volume breakthroughs at low levels during consolidation, and decisively exit during high levels when there is a volume stagnation.
Nine, have a plan for both losses and gains: they will set a stop-loss and take-profit in advance. This way, decisions won't be made due to greed or fear.
Ten, don't borrow money to trade crypto: trading is like a roller coaster, and the risks are very high. Experts never borrow money to play this, so they don't end up unable to afford food after losses; keeping your money safe is the most important.
Eleven, use spare money for trading: the money for trading should be what you don’t need urgently; don’t risk your meal money. This way, even if you lose, it won't affect your life, and your mindset will be more stable.
Twelve, insist on reviewing weekly, checking if the logic of holding coins has changed, technically observing if the weekly candlestick trend aligns with your judgment, and whether the direction has changed; timely review and adjust trading strategies!
Investors in the crypto world, whether novices or experts, gain not only financial returns from Kuige but also growth in investment knowledge and experience.
Continued attention: $BTC $ETH #币安Alpha上新 #CynthiaLummis重提比特币法案
