Why should you look at 4-hour, 1-hour, and 15-minute K-line charts?
Many traders keep falling into the trap in the crypto market, and the core issue is focusing on only one timeframe. Today, I will break down my multi-timeframe K-line trading method that I have been using for over 2 years. The core is three steps: grasp the trend, find the right position, and time the entry well.
**Step 1: 4-hour K-line determines whether to go long or short**
This timeframe is long enough to filter out short-term noise and clearly see the trend.
What does an uptrend look like? Higher highs and higher lows moving in sync. When a pullback occurs to a low point, it’s a good opportunity to buy the dip. Conversely, in a downtrend, lower highs and lower lows move together. A rebound to a high point can be considered for shorting. There’s also sideways consolidation, where the price moves within a range repeatedly. Such market conditions tend to be choppy and prone to false signals, so frequent trading is not recommended.
Remember this key point: trading with the trend increases your win rate, trading against it is just giving away money.
**Step 2: 1-hour K-line is used to identify support and resistance**
After confirming the main trend, the 1-hour chart helps you precisely locate support and resistance levels.
Positions near trendlines, moving averages, or previous lows are potential entry points. Conversely, if the price approaches previous highs, key resistance, or top formations, consider taking profits or reducing your position.
**Step 3: 15-minute K-line is only used to find the "trigger" entry point**
Many people get confused. The 15-minute chart is not for analyzing the trend but for spotting the signal to enter.
Wait for a reversal signal on the small timeframe at key price levels, such as engulfing candles, bullish or bearish divergences, or golden crosses. Only then should you act. Also, pay attention to volume; a breakout with high volume is more reliable, otherwise, it could be a false move or a fakeout.
**How to coordinate these three timeframes?**
1. Use the 4-hour chart first to decide whether to go long or short. 2. Use the 1-hour chart to mark support and resistance zones. 3. Use the 15-minute chart to find the precise entry point.
**Some common pitfalls:**
If the directions across different timeframes conflict, it’s better to stay on the sidelines and wait. Don’t trade without confidence. Small timeframe fluctuations are quick, so always set stop-losses; otherwise, you risk being wiped out repeatedly. When the trend, position, and timing align, your win rate will be much higher than blindly guessing by looking at charts.
I have tested this method for a long time, and it forms a stable foundation for consistent results. Markets are always there, opportunities wait for no one. To stay on beat and avoid getting lost, you need to master this logical approach.
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Why should you look at 4-hour, 1-hour, and 15-minute K-line charts?
Many traders keep falling into the trap in the crypto market, and the core issue is focusing on only one timeframe. Today, I will break down my multi-timeframe K-line trading method that I have been using for over 2 years. The core is three steps: grasp the trend, find the right position, and time the entry well.
**Step 1: 4-hour K-line determines whether to go long or short**
This timeframe is long enough to filter out short-term noise and clearly see the trend.
What does an uptrend look like? Higher highs and higher lows moving in sync. When a pullback occurs to a low point, it’s a good opportunity to buy the dip. Conversely, in a downtrend, lower highs and lower lows move together. A rebound to a high point can be considered for shorting. There’s also sideways consolidation, where the price moves within a range repeatedly. Such market conditions tend to be choppy and prone to false signals, so frequent trading is not recommended.
Remember this key point: trading with the trend increases your win rate, trading against it is just giving away money.
**Step 2: 1-hour K-line is used to identify support and resistance**
After confirming the main trend, the 1-hour chart helps you precisely locate support and resistance levels.
Positions near trendlines, moving averages, or previous lows are potential entry points. Conversely, if the price approaches previous highs, key resistance, or top formations, consider taking profits or reducing your position.
**Step 3: 15-minute K-line is only used to find the "trigger" entry point**
Many people get confused. The 15-minute chart is not for analyzing the trend but for spotting the signal to enter.
Wait for a reversal signal on the small timeframe at key price levels, such as engulfing candles, bullish or bearish divergences, or golden crosses. Only then should you act. Also, pay attention to volume; a breakout with high volume is more reliable, otherwise, it could be a false move or a fakeout.
**How to coordinate these three timeframes?**
1. Use the 4-hour chart first to decide whether to go long or short.
2. Use the 1-hour chart to mark support and resistance zones.
3. Use the 15-minute chart to find the precise entry point.
**Some common pitfalls:**
If the directions across different timeframes conflict, it’s better to stay on the sidelines and wait. Don’t trade without confidence. Small timeframe fluctuations are quick, so always set stop-losses; otherwise, you risk being wiped out repeatedly. When the trend, position, and timing align, your win rate will be much higher than blindly guessing by looking at charts.
I have tested this method for a long time, and it forms a stable foundation for consistent results. Markets are always there, opportunities wait for no one. To stay on beat and avoid getting lost, you need to master this logical approach.