Recently, many brothers have been complaining to me: as soon as they open the candlestick chart, they get overwhelmed. Sometimes they think the price will rise, so they rush in to buy; other times they fear a drop, so they quickly sell. After all the fuss, they end up not understanding the market trend, and their accounts keep shrinking. Actually, many people don’t understand candlestick charts because they only focus on one cycle. When the price rises a bit, they think it’s going to take off; when it drops a little, they think it’s going to crash. The method I use is very simple: the three-layer candlestick approach—look at the direction, find the position, and seize the opportunity.

Step 1: First look at the 4-hour candlestick chart—determine the direction. This cycle’s main task is: look at the direction. Shorter cycles have too much noise; the 4-hour chart can filter out many false signals. If the highs and lows are constantly rising → bullish trend. In this kind of market, don’t think about shorting; wait for a pullback to buy low. If the highs and lows are continuously falling → bearish trend. Rebound to key levels, follow the trend and short. If the 4-hour chart is moving sideways → hold back. Range-bound markets are most likely to hit you with false signals.

Step 2: Then look at the 1-hour candlestick chart—find the position. This layer mainly involves identifying key levels: support, resistance, previous highs and lows, trendlines, etc. Price near support → it’s meaningful to enter the market. Price near resistance → consider reducing positions or taking profits. Don’t chase in the middle—middle levels are the easiest to get caught in a trap.

Step 3: Finally, look at the 15-minute candlestick chart—seize the opportunity. This cycle isn’t about trend analysis; it’s specifically used to catch entry signals. When the price reaches a key level, check for signals like engulfing patterns, bottom divergence, golden cross, etc. If it’s a breakout, volume must be considered. Breakouts without volume are mostly false signals.

To summarize the trading logic:
4-hour → determine the direction
1-hour → find the position
15-minute → seize the opportunity

When all three cycles align in direction, the success rate is much higher. If the directions conflict, just stay out of the market. Trading isn’t about speed; it’s about patience. Don’t get scared and make reckless moves because of one or two candlesticks. Take your time, observe carefully, and you’ll realize—the market has been repeating the same rhythm all along.

If you still don’t know what to do now, follow Sister Mi. As long as you’re willing to learn, I’m always here!