Why look at the 4-hour, 1-hour, and 15-minute Candlestick charts?

Many people repeatedly fall into traps in the cryptocurrency space because they only focus on one cycle.

Today I will talk about my commonly used multi-timeframe Candlestick trading method, which consists of three simple steps: grasp the direction, find the points, and set the timing.

1. 4-hour Candlestick: Determines the general direction of whether you go long or short.
This period is long enough to filter out short-term noise and clearly see the trend:
•Uptrend: Highs and lows rise together → Buy on dips
•Downtrend: Highs and lows are decreasing simultaneously → Short on the rebound
• Consolidation: The price fluctuates repeatedly within a range, making it easy to get caught in false moves; frequent trading is not recommended.

Remember one thing: only by following the trend can you have a winning rate, going against the trend will only give away money.

2. 1-hour Candlestick: Used to delineate ranges and identify key levels.
Once the major trend is established, the 1-hour chart can help you find support/resistance:
• Positions near the trend line, moving average, and previous lows are potential entry points.
• When approaching previous highs, important resistance, or the emergence of top formations, one should consider taking profits or reducing positions.

3. 15-minute Candlestick: Only perform the final "gunshot action"
This period is specifically used to look for entry opportunities, not to observe trends:
• Wait for key price levels to show small cycle reversal signals (engulfing, bottom divergence, golden cross) before taking action.
• Volume needs to be released for a breakout to be reliable; otherwise, it is easy to have false moves.

How to combine multiple timeframes?
1. Determine the direction first: Use the 4-hour chart to choose whether to go long or short.
2. Find the entry area: Use the 1-hour chart to identify support or resistance zones.
3. Precise Entry: Use the 15-minute chart to find the signal for the final touch.

A few additional points:
•If there are conflicting directions across several periods, it is better to stay out of the market and observe, rather than taking uncertain trades.
• Short-term fluctuations are fast, always set a stop-loss to prevent being repeatedly swept away.
• A good combination of trend + position + timing is much better than blindly guessing while staring at the chart.

This multi-timeframe Candlestick method has been my stable output foundation for over 2 years. Whether you can use it well depends on whether you are willing to look at the charts more and summarize.

#Crypto