Different cycles are like magnifying glasses of different multiples; if you don't understand how to coordinate them, you can only be led by the market.
I have seen too many people make a fortune today and lose it all tomorrow, repeatedly falling into the same pit. Where does the problem lie? The vast majority only focus on the K-line chart of one cycle, just like observing the world through a cat's eye, leading to narrow vision and inevitable misjudgments.
After years of practical experience, I have summarized a set of 'Three Cycle Analysis Method' — using 4-hour, 1-hour, and 15-minute K-lines to make decisions. This method has helped me achieve stable profits, and today I will share it with you without reservation.
01 Look at the big direction, why is the 4-hour candlestick the 'stabilizing force'?
The 4-hour candlestick is my 'navigation instrument'. This timeframe is long enough to effectively filter out short-term market noise, allowing you to clearly see the true trend.
How to judge the trend? It’s actually very simple:
Uptrend: Highs and lows continuously rise, like going up stairs. At this time, one should wait to buy on dips rather than shorting against the trend.
Downtrend: Highs and lows are synchronously decreasing, like going down stairs. At this point, one should short on rebounds, rather than blindly trying to catch the bottom.
Sideways consolidation: Prices fluctuate back and forth within a range. This kind of market is the hardest to profit from, and the best strategy is to reduce trading frequency.
My experience is that trading with the trend is the key to a high win rate. When the 4-hour chart shows a clear trend, I would never trade against it, which helped me avoid many traps of 'false signals'.
02 Find key positions, how to define the 'combat zone' with 1-hour candlesticks?
Once the main direction is established, the next step is to use the 1-hour candlesticks to find specific support and resistance levels.
My commonly used methods for identifying key positions include:
Trend lines: connect two or more consecutive lows or highs to form dynamic support or resistance.
Previous highs and lows: Previous highs often become resistance, and previous lows typically form support.
Moving average system: Especially MA20 and MA60, often play the role of dynamic support/resistance levels.
Here’s a key point: after finding key positions, don’t rush to enter the market. I usually observe how the price behaves around these positions to see if there are signs of stabilization or reversal patterns.
For example, when the 4-hour chart shows an uptrend, and the price retraces to the support level on the 1-hour chart, starting to show slight oscillations, that’s a signal worth paying attention to.
03 Precise entry, the 'final step' of the 15-minute candlestick.
The 15-minute candlestick is my tool for determining the specific timing of entry, but remember that small timeframes should not be used to look at the trend, only to find the timing.
When the price reaches the key area marked on the 1-hour chart, I switch to the 15-minute chart to look for specific entry signals:
Reversal candlestick patterns: such as bullish engulfing (a bullish candle completely engulfs the previous bearish candle), hammer patterns, etc.
Technical indicator signals: such as MACD divergence (price makes a new low while the indicator does not) and golden crosses in moving averages, etc.
Volume verification: any signal without accompanying volume is unreliable. Real breakthroughs often come with a significant increase in volume.
I remember once waiting for an entry opportunity in multiple currencies. The price had already reached the support zone on the 1-hour chart, but there was no confirmation signal on the 15-minute chart. I patiently waited for a full 6 hours and finally got a strong bullish engulfing pattern, which led me to decisively enter the market. Later, this trade yielded considerable profits.
04 How to coordinate across three timeframes? An overview of the practical process.
The complete trading decision-making process looks like this:
Step One: Open the 4-hour chart to determine the main trend direction (uptrend, downtrend, or sideways).
Step Two: Switch to the 1-hour chart and mark key support and resistance areas.
Step Three: Wait for the price to reach the key area and show reversal signals on the 15-minute chart.
Step Four: Enter decisively while setting a stop-loss level.
Here I want to emphasize two common pitfalls:
When there’s a timeframe conflict, it’s better to stay out of the market: when different timeframe directions are inconsistent, forcing a trade is gambling. For example, if the 4-hour chart shows an uptrend, but the 1-hour chart shows a downtrend, the best choice is to wait.
Small timeframes must have stop-losses set: the 15-minute chart is volatile, and without stop-loss protection, it’s easy to get swept out by short-term fluctuations. I usually set my stop-loss a suitable distance below or above the key position on the 15-minute chart.
05 Mindset and discipline are more important than technique.
No matter how good a method is, it requires disciplined execution. The biggest enemy of multi-timeframe analysis is impatience.
I used to be a frequent trader, getting anxious if I didn’t trade a few times a day. The result was often making small profits while missing out on big market movements. After mastering the multi-timeframe analysis method, I learned to wait and only act when familiar patterns and timing arise.
The market is never short of opportunities; what’s lacking is patience. True wealth is not gained through frequent trading, but by seizing major market movements and firmly holding onto profits.
Now I can watch opportunities pass by without feeling anxious because I know that as long as I stick to my trading system, the opportunities that truly belong to me will come, and when they do, I will have enough capital and confidence to seize them.
Finally, let me say a few words.
This three-timeframe candlestick analysis method, I have used for over two years, and it has become the core of my trading system. But remember, no method can guarantee 100% success; the key is to find a system that suits you and stick to it.
You might as well start practicing today: open your trading software, refer to historical data, and see which market movements you would miss using this method, and which opportunities you could seize. Reviewing and summarizing frequently is the only shortcut to improving trading skills.
The market is always there, opportunities are available every day, surviving is more important than making quick money. Behind stable profits is a mature mindset and methodology. I hope this three-timeframe analysis method shared today can help you break out of the cycle of repeated losses.
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