When you dive into K-line research, you can figure out how to earn the first 1 million in the cryptocurrency world.
Why pay attention to the 4-hour, 1-hour, and 15-minute K-lines? Many people repeatedly stumble in the crypto space because they only focus on one time frame.
Below, I will share my commonly used multi-timeframe K-line trading method, which consists of three simple steps to help you determine the trading direction, entry points, and timing.
First, look at the 4-hour K-line, which can help you establish the overall bullish or bearish direction.
This longer time frame can filter out quite a bit of short-term interference, making the trend direction clear at a glance. In an upward trend, the highs and lows move up together.
During a pullback, it's a good buying opportunity; in a downward trend, the highs and lows move down together, and during a rebound, it's suitable to short; if the market is in consolidation, with prices fluctuating back and forth in a range, frequent trading can easily lead to losses, so it’s advisable to trade less.
Next, use the 1-hour K-line to delineate ranges and find key levels.
Once the major trend is confirmed, it helps you identify support and resistance levels. Approaching these levels indicates potential entry points; if nearing previous highs, significant resistance, or forming a top pattern, you should consider taking profits or reducing positions.
Finally, use the 15-minute K-line to precisely "pull the trigger"; it specifically looks for entry timing, without focusing on the trend. Only act when a reversal signal appears at key price levels, and a significant increase in trading volume indicates a reliable breakout.
When combining multiple timeframes, first establish the direction, then find the entry area, and finally enter precisely.
In case of direction conflict, stay flat, and always set stop-losses for shorter timeframes. Strong reversal strategies can bring back profits in the chat room