Recently, a follower asked me: “Why do I still end up stuck in a losing trade after studying so much technical analysis?”
I looked at her trading history, and there was just one problem:
She was watching only one timeframe.
That was exactly what I did when I first got into trading a few years ago. I knew nothing, so I kept my eyes on the 1-minute chart. Whenever I saw a price move, I jumped in—and got wiped out by a pullback almost immediately.
Later, I realized it wasn’t that my technical analysis was bad; my trading habits were the problem. Looking at just one timeframe is practically asking to lose money.
The right approach is to combine the 4-hour, 1-hour, and 15-minute timeframes. Narrow things down step by step: the overall direction, key levels, and entry points.
4-hour chart: Determine the overall direction first$INTCB .
This is one of the most important timeframes. It helps filter out short-term noise and reveal where the market is headed.
If the 4-hour chart is in an uptrend, wait for a pullback to buy.
If it’s in a downtrend, wait for a bounce to go short.
When the market is moving sideways, it’s best not to trade too often. It’s hard to make money in those conditions anyway.
1-hour chart: Confirm support and resistance.
Once you’ve established the direction, look at the 1-hour chart.
It can help you identify support and resistance levels and find a suitable entry point.
If the price is approaching a previous low or a trendline, you can get ready to enter.
If it’s nearing a previous high or an important resistance level, get ready to take profit or reduce your position.
15-minute chart: Time your entry.$INTCB
Finally, use the 15-minute chart to pinpoint your entry.
Don’t use it to determine the overall trend; just look for short-term reversal signals.
If signals such as an engulfing pattern, bullish divergence, or a golden cross appear at a key price level, consider entering.
A breakout signal is more reliable when trading volume increases, helping you avoid many false breakouts.
How do you put it all together?
First, use the 4-hour chart to determine the direction and decide whether to go long or short.
Then use the 1-hour chart to confirm key support and resistance levels.
Finally, look for the best entry point on the 15-minute chart.
Following these steps can help you avoid most losses.
Ultimately, it comes down to this:
Follow the trend and time your entry precisely.
Many people lose money not because they can’t read the charts, but because they’re too impulsive. They don’t know how to set a stop-loss or read the market’s rhythm, so once they enter, they’re at the market’s mercy.#IMF称代币化市场仍小且碎片化
I looked at her trading history, and there was just one problem:
She was watching only one timeframe.
That was exactly what I did when I first got into trading a few years ago. I knew nothing, so I kept my eyes on the 1-minute chart. Whenever I saw a price move, I jumped in—and got wiped out by a pullback almost immediately.
Later, I realized it wasn’t that my technical analysis was bad; my trading habits were the problem. Looking at just one timeframe is practically asking to lose money.
The right approach is to combine the 4-hour, 1-hour, and 15-minute timeframes. Narrow things down step by step: the overall direction, key levels, and entry points.
4-hour chart: Determine the overall direction first$INTCB .
This is one of the most important timeframes. It helps filter out short-term noise and reveal where the market is headed.
If the 4-hour chart is in an uptrend, wait for a pullback to buy.
If it’s in a downtrend, wait for a bounce to go short.
When the market is moving sideways, it’s best not to trade too often. It’s hard to make money in those conditions anyway.
1-hour chart: Confirm support and resistance.
Once you’ve established the direction, look at the 1-hour chart.
It can help you identify support and resistance levels and find a suitable entry point.
If the price is approaching a previous low or a trendline, you can get ready to enter.
If it’s nearing a previous high or an important resistance level, get ready to take profit or reduce your position.
15-minute chart: Time your entry.$INTCB
Finally, use the 15-minute chart to pinpoint your entry.
Don’t use it to determine the overall trend; just look for short-term reversal signals.
If signals such as an engulfing pattern, bullish divergence, or a golden cross appear at a key price level, consider entering.
A breakout signal is more reliable when trading volume increases, helping you avoid many false breakouts.
How do you put it all together?
First, use the 4-hour chart to determine the direction and decide whether to go long or short.
Then use the 1-hour chart to confirm key support and resistance levels.
Finally, look for the best entry point on the 15-minute chart.
Following these steps can help you avoid most losses.
Ultimately, it comes down to this:
Follow the trend and time your entry precisely.
Many people lose money not because they can’t read the charts, but because they’re too impulsive. They don’t know how to set a stop-loss or read the market’s rhythm, so once they enter, they’re at the market’s mercy.#IMF称代币化市场仍小且碎片化