$ETH After you study the candlestick chart, you will truly understand how to make your first million in the crypto world.
The reason so many people repeatedly "fall into pits" is that they only focus on one timeframe, lacking a long-term perspective.
Today, I want to share with you my commonly used multi-timeframe candlestick trading method.
Simple three steps: grasp the direction, find the entry points, time the market. $NOM
1. 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: higher highs and higher lows → buy on dips
Downtrend: lower highs and lower lows → short on rebounds
Consolidation: price fluctuates within a range, easy to get whipsawed, not recommended for frequent trading
Remember this: trading with the trend increases your win rate; trading against the trend just means giving away money $ON
2. 1-hour candlestick: used to delineate ranges and find key levels
Once the major trend is confirmed, the 1-hour chart can help you find support/resistance:
Near trend lines, moving averages, and previous lows are potential entry points
As you approach previous highs, important resistance, or when a top pattern appears, consider taking profits or reducing positions
3. 15-minute candlestick: only for the final “trigger action”
This timeframe is dedicated to finding entry opportunities, not for observing the trend:
Wait for key price levels to show small timeframe reversal signals (engulfing, bullish divergence, golden cross), then take action
Volume must be present; breakthroughs are reliable only then, otherwise, it’s easy to get faked out
How to combine multi-timeframes?
First, determine the direction: use the 4-hour chart to confirm whether to go long or short
Find the entry area: use the 1-hour chart to locate support or resistance zones
Precise entry: use the 15-minute chart to find the final entry signal
A few additional points:
If multiple timeframe directions conflict, it’s better to stay out and observe rather than take uncertain trades
Small timeframe fluctuations are faster, always use stop-losses to avoid being taken out by rapid movements
Combining trend, position, and timing is much stronger than just staring at charts and guessing
This multi-timeframe candlestick method has been my core for stable profits over the years.
To learn it well is not an overnight success; it requires you to spend time analyzing charts and summarizing experiences.