Many people repeatedly fall into traps in the crypto world, the problem lies in focusing only on one timeframe.
Today I will talk about my commonly used multi-timeframe candlestick trading method, a simple three-step process: grasp the direction, find the levels, and set the timing.
One, 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: Highs and lows rise together → Buy on pullbacks
• Downtrend: Highs and lows decrease together → Short on rebounds
• Consolidation: Prices fluctuate within a range, easy to get whipsawed, not recommended for frequent trading
Remember this: Trading with the trend increases win rate, trading against it only gives away money
Two, 1-hour candlestick: Used to mark ranges and find key levels
After the major trend is determined, the 1-hour chart can help you find support/resistance:
• Approaching trend lines, moving averages, and previous lows are potential entry points
• Approaching previous highs, important resistance, and the appearance of topping patterns, consider taking profits or reducing positions
Three, 15-minute candlestick: Only do the final 'firing action'
This timeframe is specifically used to find entry opportunities, not for observing trends:
• Wait for key price levels to show short-term reversal signals (engulfing, bottom divergence, golden cross) before acting
• Volume must be released for the breakout to be reliable; otherwise, it is prone to false actions
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 circle 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 the directions of several timeframes conflict, it is better to stay in cash and observe, rather than take uncertain trades
• Short-term fluctuations are fast, always set a stop loss to prevent being repeatedly stopped out
• The combination of trend + position + timing is much stronger than blindly guessing while watching the chart
This multi-timeframe candlestick method, I have used for over 2 years, is a stable output configuration. Whether you can use it well depends on whether you are willing to look at more charts and summarize more.
