Why look at 4-hour, 1-hour, and 15-minute candlesticks?
Many people in the cryptocurrency world repeatedly fall into traps, the problem lies in only focusing on one timeframe.
Today I will discuss my commonly used multi-timeframe candlestick trading method, which involves three simple steps: grasping the direction, finding entry points, and timing.
1. 4-hour candlestick: determines the big direction for your long or short position
This timeframe is long enough to filter out short-term noise, allowing you to clearly see the trend:
• Uptrend: higher highs and higher lows → buy on the dip
• Downtrend: lower highs and lower lows → short on the rebound
• Sideways consolidation: prices fluctuate within a range, making it easy to get whipsawed, not recommended for frequent trading
Remember this saying: go with the trend for a higher win rate; going against it only gives away money.
2. 1-hour candlestick: used to delineate zones and find key levels
Once the big trend is confirmed, the 1-hour chart can help you find support/resistance:
• Near trendlines, moving averages, or previous lows are potential entry points
• Approaching previous highs, significant resistance, or when top patterns appear, consider taking profits or reducing your position.
3. 15-minute candlestick: only for the final “trigger action”
This timeframe is specifically for finding entry opportunities, not for observing trends:
• Wait for key price levels to show small timeframe reversal signals (engulfing, bottom divergence, golden cross) before acting
• Volume should increase; only then is a breakout reliable, otherwise, it may be a false move.
How to combine multiple timeframes?
1. First determine the direction: use the 4-hour chart to choose whether to go long or short
2. Identify entry zones: use the 1-hour chart to mark support or resistance areas
3. Precise entry: use the 15-minute chart to find the signal for the final entry
A few additional points:
• If several timeframes show conflicting directions, it’s better to stay out and observe, rather than take uncertain trades
• Small timeframe volatility is fast, always set a stop loss to prevent being whipsawed
• A good combination of trend + location + timing is far superior to blindly guessing by staring at the chart.
This multi-timeframe candlestick method has been used by me for over 2 years and is a stable foundational configuration. Whether you can use it well depends on your willingness to look at more charts and summarize your findings.