Why do we need to look at the 4-hour, 1-hour, and 15-minute candlesticks in the cryptocurrency market?

Eight years ago, when I first entered the circle, I always focused on the 1-minute chart. Whenever I saw a trend forming, I immediately jumped in, but a few minutes later, a pullback would trigger my stop loss. After several repetitions, I lost dozens of thousands, and I was just about to give up until I met a senior who told me that my problem was focusing solely on one timeframe. It was then that I had an epiphany. Did any of you experience the same? So today, I will talk about my commonly used multi-timeframe candlestick trading method, which consists of three simple steps: grasp the direction, find the entry points, and determine the timing. (I recommend liking and saving this to avoid losing it later) Here’s the good stuff:

1. 4-hour candlestick: Determines the major direction for going long or short.

This timeframe is long enough to filter out short-term noise and clearly see the trend.

• Upward trend: Highs and lows rise together → Buy on pullbacks.

• Downward trend: Highs and lows fall together → Short on rebounds.

• Sideways movement: Prices oscillate within a range, making it easy to get whipsawed; frequent trading is not recommended.

Remember this phrase: Following the trend increases winning chances; going against it will only lead to losses.

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

Once the major trend is confirmed, the 1-hour chart can help you find support/resistance levels:

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

• When approaching previous highs, important resistances, or the emergence of top patterns, consider taking profits or reducing positions.

3. 15-minute candlestick: "Determines the entry action."

This timeframe is only used to find entry opportunities, not to look at trends.

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

• Trading volume must increase; only then is a breakout reliable; otherwise, it’s easy to get faked out.

How to coordinate multiple timeframes?

1. First, determine the direction: Use the 4-hour chart to decide whether to go long or short.

2. Find entry zones: Use the 1-hour chart to outline support or resistance areas.

3. Precise entry: Use the 15-minute chart to find the final entry signals.

A few additional points:

• If the directions of several timeframes conflict, it’s better to stay in cash and observe, rather than make trades without certainty.

• Small timeframes fluctuate quickly, so you need to set stop losses to prevent being repeatedly stopped out.

• Combining following the trend, positioning, and timing is much stronger than blindly guessing on the chart.

I have used this multi-timeframe candlestick method for over 28 years; it is the foundational configuration for stable output. Whether you can use it well depends on whether you are willing to look at the charts more and summarize. If you have any questions, feel free to message me!