Many traders have encountered this problem: watching the charts and K-lines every day, yet still getting chopped up in short-term fluctuations. Buying right before a drop, selling just before a rally. The more actively you trade, the faster your account shrinks.
The real culprit behind this isn’t the K-line itself, but rather not understanding the purpose of different timeframes. Timeframes are like viewing a city with different tools—an aerial shot, street view, or a magnifying glass—each showing completely different details. Using the wrong tool, no matter how hard you try, is pointless.
My approach is straightforward—three timeframes, three tasks, each with its own role:
**Use the 4-hour chart to confirm the main trend**
The 4-hour chart filters out short-term market noise. It clearly shows the market’s overall state. Are the highs continuously breaking new highs and lows rising? That’s a standard bullish trend. You wait for a pullback to the moving average or previous low before entering, riding the trend. Conversely, if highs are breaking down and lows are declining, that’s a bearish trend. Consider shorting at resistance levels during rebounds. If the price is oscillating within a range without clear higher highs or lower lows, the smartest move is to stay on the sidelines, observe carefully, and trade less.
**Use the 1-hour chart to find entry points**
Once the trend is confirmed, the next question is where exactly to enter. This is where the 1-hour chart comes in. You already know the general direction from the 4-hour chart, so now look for key technical levels: trendlines, moving averages, previous lows—these are critical areas to watch. If the price approaches these support levels, it’s likely to bounce, signaling a potential entry. Approaching previous highs or important resistance zones? Consider reducing position size or taking profits in advance. The 1-hour chart marks the precise "where to act" points for your trades.
**Use the 15-minute chart to pinpoint the exact entry timing**
Now that you know the direction and the position, you need to find the exact moment to enter—the precise timing. That’s the 15-minute chart’s job. When the price reaches the key levels identified on the 1-hour chart, start looking for signals on the 15-minute chart. Is there a reversal pattern? Divergence? Has a moving average crossover occurred? These can be potential entry signals. Especially for breakout trades: if you’re aiming for a breakout, volume confirmation is essential. Breakouts without volume are often false signals, and you risk being shaken out.
**Final advice**
Look at all three timeframes together. The core idea is: the 4-hour chart determines the main trend; the 1-hour chart finds the specific position; the 15-minute chart pinpoints the precise entry timing. If signals from these three timeframes conflict or contradict each other, the wisest choice isn’t to force a trade but to wait and see, allowing the market to clarify further. Staying on the sidelines and observing will never cause losses.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
10 Likes
Reward
10
5
Repost
Share
Comment
0/400
FOMOSapien
· 01-09 23:55
Holy cow, finally someone said it straight. I used to get rugged like this and questioned my whole life.
View OriginalReply0
Lonely_Validator
· 01-08 14:56
Honestly, watching the 15-minute chart every day and getting cut so often makes me doubt life. This article hits the nail on the head.
View OriginalReply0
GateUser-addcaaf7
· 01-08 14:50
Basically, it's still greediness and impatience. Not being able to see the bigger picture and insisting on daily trading. This set of theories is indeed reliable, but the key is whether you can hold on during the period of empty positions.
View OriginalReply0
LiquidityNinja
· 01-08 14:42
To be honest, I've been using the multi-cycle linkage system for a long time. The key is not to be greedy for quick gains. Many people get stuck on the 15-minute chart, insisting on chasing highs, and as a result, they get wiped out by a false breakout.
Many traders have encountered this problem: watching the charts and K-lines every day, yet still getting chopped up in short-term fluctuations. Buying right before a drop, selling just before a rally. The more actively you trade, the faster your account shrinks.
The real culprit behind this isn’t the K-line itself, but rather not understanding the purpose of different timeframes. Timeframes are like viewing a city with different tools—an aerial shot, street view, or a magnifying glass—each showing completely different details. Using the wrong tool, no matter how hard you try, is pointless.
My approach is straightforward—three timeframes, three tasks, each with its own role:
**Use the 4-hour chart to confirm the main trend**
The 4-hour chart filters out short-term market noise. It clearly shows the market’s overall state. Are the highs continuously breaking new highs and lows rising? That’s a standard bullish trend. You wait for a pullback to the moving average or previous low before entering, riding the trend. Conversely, if highs are breaking down and lows are declining, that’s a bearish trend. Consider shorting at resistance levels during rebounds. If the price is oscillating within a range without clear higher highs or lower lows, the smartest move is to stay on the sidelines, observe carefully, and trade less.
**Use the 1-hour chart to find entry points**
Once the trend is confirmed, the next question is where exactly to enter. This is where the 1-hour chart comes in. You already know the general direction from the 4-hour chart, so now look for key technical levels: trendlines, moving averages, previous lows—these are critical areas to watch. If the price approaches these support levels, it’s likely to bounce, signaling a potential entry. Approaching previous highs or important resistance zones? Consider reducing position size or taking profits in advance. The 1-hour chart marks the precise "where to act" points for your trades.
**Use the 15-minute chart to pinpoint the exact entry timing**
Now that you know the direction and the position, you need to find the exact moment to enter—the precise timing. That’s the 15-minute chart’s job. When the price reaches the key levels identified on the 1-hour chart, start looking for signals on the 15-minute chart. Is there a reversal pattern? Divergence? Has a moving average crossover occurred? These can be potential entry signals. Especially for breakout trades: if you’re aiming for a breakout, volume confirmation is essential. Breakouts without volume are often false signals, and you risk being shaken out.
**Final advice**
Look at all three timeframes together. The core idea is: the 4-hour chart determines the main trend; the 1-hour chart finds the specific position; the 15-minute chart pinpoints the precise entry timing. If signals from these three timeframes conflict or contradict each other, the wisest choice isn’t to force a trade but to wait and see, allowing the market to clarify further. Staying on the sidelines and observing will never cause losses.