🕐Analysis of the 1-hour Timeframe

This document provides a comprehensive explanation of how to analyze the 1-hour timeframe to confirm its alignment with the current market direction outlined by the 6-hour timeframe analysis.

Attention: This analysis should not be undertaken until there is a solid understanding of the 6-hour timeframe analysis and a confirmed market direction.

After identifying the direction in the ocean (6-hour timeframe), we can proceed to delve into the 1-hour timeframe to closely examine what is transpiring within the waves of this larger context.

The provided image illustrates an example of two consecutive green candles forming the "Stronger Color on Color" pattern. Another noteworthy aspect is that neither of them displays a tail or lower wick. This confirmation of the absence of lower wicks reinforces the upside strength that we seek when aiming for alignment with the 6-hour analysis conducted.

Info: The two candles preceding those that are outlined are indeed valid and larger. However, they were not highlighted because during that period, the second 6-hour candle that confirms the market direction had not yet occurred. As a result, we need to wait for further confirmation.

Bitcoin / Tether Standard Futures BingX (1H Timeframe)

The exact same principle applies to a bearish scenario. Attached below is an example illustrating the alignment on the 1-hour timeframe, represented by the Stronger Color on Color pattern, as indicated by the two outlined candles. This alignment corresponds with the previously analyzed bearish direction.

Bitcoin / Tether Standard Futures BingX (1H Timeframe)

The 1-hour analysis, in theory, serves as a confirmation of the alignment of the waves with the direction of the ocean (6-hour timeframe). When these two align, a clear trading opportunity emerges. To proceed in this manner, let's examine how we can leverage this market opportunity using an even smaller timeframe, the 3-minute chart.