When you study candlesticks carefully, you will know how to earn the first 1 million in the cryptocurrency world?
Why look at 4-hour, 1-hour, and 15-minute candlesticks?
Many people repeatedly fall into traps in the cryptocurrency world, and the problem lies in only focusing on one timeframe.
Today, I will talk about my commonly used multi-timeframe candlestick trading method, which consists of three simple steps: grasping the direction, finding entry points, and timing.
1. 4-hour candlestick: determines the overall direction of whether you go long or short.
This timeframe is long enough to filter out short-term noise and clearly see the trend:
Upward trend: higher highs and higher lows → buy on dips
Downward trend: lower highs and lower lows → sell on rebounds
Consolidation: prices fluctuate within a range, easily causing false signals; frequent trading is not recommended.
Remember this: trading with the trend increases your win rate; going against the trend only loses money.
2. 1-hour candlestick: used to define ranges and find key levels.
Once the major trend is confirmed, the 1-hour chart can help you identify support/resistance:
Locations near trendlines, moving averages, and previous lows are potential entry points.
Approaching previous highs, significant resistance, or signs of a top means you should consider taking profits or reducing your position.
3. 15-minute candlestick: only for the final “trigger action.”
This timeframe is specifically for finding entry timing, not for trend analysis:
Wait for key price levels to show small timeframe reversal signals (engulfing, bullish divergence, golden cross) before entering.
Increased volume makes breakouts more reliable; otherwise, it’s easy to get faked out.
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 mark support or resistance areas.
3. Precise entry: use the 15-minute chart to find the final signal to act.
A few additional points:
If the directions of multiple timeframes conflict, it’s better to stay out and wait rather than take uncertain trades.
Small timeframes are volatile; always use stop-losses to prevent being repeatedly shaken out.
The combination of following the trend, position, and timing is much better than blindly guessing at the charts.
This multi-timeframe candlestick method, I have used for over 3 years, is a stable foundational configuration. Whether you can use it well depends on your willingness to look at the charts more and summarize your findings.
