Why watch 4-hour, 1-hour, and 15-minute candlestick charts?
In the crypto world for 8 years, I used to focus only on the 1-minute chart, my heart racing frequently, always caught in a cycle of gain and loss, often buying high/selling low. Later, I met a big player in the industry, and with a little guidance, I realized it was that simple. Our problem was focusing on just one timeframe. Today, I'll share my commonly used multi-timeframe candlestick trading method in three simple steps: grasping direction, finding entry points, and timing.
1. 4-hour candlestick: determines your overall direction for going long or short
This timeframe is long enough to filter out short-term noise, allowing for a clear view of trends:
• Upward trend: higher highs and higher lows → buy on dips
• Downward trend: lower highs and lower lows → short on rebounds
• Sideways fluctuation: prices oscillate within a range, making it easy to get caught out, not recommended for frequent trading
Remember this: Following the trend increases winning probability, going against it only leads to losses.
2. 1-hour candlestick: used to define ranges and find key levels
Once the overall trend is confirmed, the 1-hour chart can help you find support/resistance:
• Approaching trendlines, moving averages, and previous lows are potential entry points
• Approaching previous highs, important resistance, or the emergence of top patterns indicates it's time to consider taking profits or reducing positions.
3. 15-minute candlestick: only for making the "entry action" later
This timeframe is specifically used for finding entry timing, not for viewing trends:
• Wait for key price levels to show small timeframe reversal signals (engulfing, bottom divergence, golden cross) before acting
• Volume must be increasing; breakthroughs are reliable only then, otherwise, false movements are common.
How to coordinate multiple timeframes?
1. First, determine 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. Precisely enter: use the 15-minute chart to find the signals for the final entry.
A few additional points:
• If the directions of several timeframes conflict, it is better to stay out and observe than to take uncertain trades.
• Small timeframes fluctuate quickly, so always use stop-losses to prevent getting repeatedly stopped out.
• The combination of trend + position + timing is much better than blindly guessing at charts.
I have used this multi-timeframe candlestick method for over 7 years, and it is the foundation of stable output. Whether you can use it well depends on whether you are willing to look at more charts and summarize! #内容挖矿升级 #加密市场反弹