Strategy: Trend-Pullback Breakout using EMAs + RSI + Volume

This strategy catches strong trending moves with low drawdown.

Indicators to Use:

  1. EMA 20 & EMA 50

    • Tracks the short- and mid-term trend.

    • Use EMA crossovers and dynamic support/resistance.

  2. RSI (14)

    • Confirms strength of pullbacks.

    • Look for RSI bounce from 40–50 in uptrend or drop from 50–60 in downtrend.

  3. Volume Profile or Volume Indicator

    • Confirms move is backed by real momentum.

    • Breakouts with volume = real move. Low volume = fakeout risk.

Entry Conditions (Long Example):

  • Price above both EMA 20 and EMA 50

  • Pullback toward EMA 20/50 with bullish candle formation (engulfing, pin bar, etc.)

  • RSI bounces from 40–50 zone

  • Volume starts rising

  • Enter on confirmation candle close

Stop-Loss:

  • Below recent swing low

  • OR slightly below EMA 50

Target:

  • Use 1:2 to 1:3 R:R minimum

  • Trail stop-loss if trend gets strong (lock profits early)

Works Best On:

  • 1H and 4H timeframes (cleaner signals)

  • Trending pairs (e.g., BTC/USDT, ETH/USDT, SOL/USDT)

Pro Tips:

  • Avoid overloading indicators. Just 2–3 high-quality ones are enough.

  • Use session timing — trade around London/NY overlap

  • Combine indicator signals with support/resistance zones for confluence

Avoid These Traps:

  • Using too many indicators → leads to confusion or conflict

  • Trading every signal → only trade high-probability setups

  • Ignoring trend → indicators lag, but trend structure leads

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