4-hour chart

4-Hour Chart in Crypto Futures Trading

The 4-hour chart is a popular time frame used by traders in Crypto Futures Trading to analyze price movements and make informed decisions. It strikes a balance between short-term and long-term trading, offering enough data to identify trends without being overwhelmed by market noise. In this article, we’ll explore how to use the 4-hour chart effectively, along with tips for beginners and strategies for Risk Management.

What is a 4-Hour Chart?

A 4-hour chart displays the price movement of an asset over 4-hour intervals. Each candlestick or bar represents the open, high, low, and close prices for that period. This time frame is ideal for traders who want to avoid the volatility of shorter time frames like the 1-hour or 15-minute charts while still capturing significant price movements.

Why Use a 4-Hour Chart?

**Less Noise**: Compared to shorter time frames, the 4-hour chart filters out minor price fluctuations, making it easier to spot trends.
**Trend Identification**: It’s excellent for identifying medium-term trends, which are crucial for Swing Trading and Position Trading.
**Time Efficiency**: Traders don’t need to monitor the market constantly, making it suitable for those with busy schedules.

How to Get Started with 4-Hour Charts

1. **Choose a Trading Platform**: Platforms like Bybit and Binance offer advanced charting tools for crypto futures trading. 2. **Set Up Your Chart**: Select the 4-hour time frame and add indicators like Moving Averages, Relative Strength Index (RSI), and Bollinger Bands. 3. **Analyze Price Action**: Look for patterns such as Support and Resistance, Trendlines, and Candlestick Patterns to make trading decisions.

Example Trades Using the 4-Hour Chart

**Example 1**: Bitcoin (BTC) is in an uptrend, and the 4-hour chart shows a breakout above a key resistance level. A trader could enter a long position with a stop-loss below the breakout point.
**Example 2**: Ethereum (ETH) forms a double top pattern on the 4-hour chart, signaling a potential reversal. A trader might open a short position with a target near the next support level.

Risk Management Tips

**Set Stop-Loss Orders**: Always define your risk by placing a stop-loss order to limit potential losses.
**Use Proper Position Sizing**: Avoid risking more than 1-2% of your trading capital on a single trade.
**Diversify Your Trades**: Don’t put all your capital into one asset. Spread your risk across multiple cryptocurrencies.

Tips for Beginners

**Start Small**: Begin with smaller trades to gain experience without risking too much capital.
**Practice Patience**: Wait for clear signals on the 4-hour chart before entering a trade.
**Learn Continuously**: Study Technical Analysis and Trading Psychology to improve your skills.

Conclusion

The 4-hour chart is a powerful tool for crypto futures traders, offering a balanced view of the market. By combining it with effective Risk Management and a solid understanding of Technical Analysis, you can increase your chances of success. Ready to start trading? Sign up on Bybit or Binance today and explore the world of crypto futures trading!

Sign Up on Trusted Platforms

The most profitable cryptocurrency exchange — buy/sell for euros, dollars, pounds — register here.

Join Our Community

Subscribe to our Telegram channel @cryptofuturestrading for analytics, free signals, and much more!