#Trading_strategy for beginner:
$BTC $ETH Strategy Name: 9 EMA & 20 EMA Crossover Strategy
Chart Timeframe: 1 Hour
Indicators Used:
9 EMA (Exponential Moving Average) – fast-moving average
20 EMA (Exponential Moving Average) – slow-moving average
Entry Criteria:
Buy (Long) Signal:
1. The 9 EMA crosses above the 20 EMA (bullish crossover).
2. Price is above both EMAs after the crossover.
3. Optional confirmation: bullish candlestick pattern (e.g., engulfing, hammer).
Sell (Short) Signal:
1. The 9 EMA crosses below the 20 EMA (bearish crossover).
2. Price is below both EMAs after the crossover.
3. Optional confirmation: bearish candlestick pattern (e.g., engulfing, shooting star).
Exit Criteria:
For Long Trade:
Exit when the 9 EMA crosses back below the 20 EMA, or
Set a Take Profit (TP) based on a 1.5x or 2x Risk-Reward Ratio.
Stop Loss (SL): Just below the 20 EMA or recent swing low.
For Short Trade:
Exit when the 9 EMA crosses back above the 20 EMA, or
TP based on 1.5x or 2x R:R.
SL just above the 20 EMA or recent swing high.
Risk Management:
Risk only 1-2% of your total capital per trade.
Use position sizing based on your SL distance.
Avoid trading in choppy or sideways markets – this strategy works better in trending conditions.
Backtesting Tip:
Use TradingView or similar platforms.
Apply this strategy on various crypto pairs (e.g., BTC/USDT, ETH/USDT).
Log your trades to review performance and optimize rules.