#TrendTradingStrategy
๐ท1. Identify the Trend
Use tools to determine the current trend:
Uptrend: Higher highs and higher lows.
Downtrend: Lower highs and lower lows.
Sideways/Range: Price moves within a horizontal range.
๐ด Indicators to use:
Moving Averages (MA):
50 EMA and 200 EMA crossovers (Golden Cross or Death Cross).
Trendlines: Draw lines along swing highs/lows.
ADX (Average Directional Index): Measures strength of the trend (above 25 = strong trend).
๐ท 2. Enter a Trade
Buy in an Uptrend or Sell in a Downtrend:
Entry signals:
Pullback to moving average (e.g., 50 EMA).
Breakout above resistance (in an uptrend).
Candlestick patterns like bullish engulfing or hammer (for buy).
Example Buy Setup:๐ฅ
Price is above 50 EMA.
ADX > 25.
RSI not overbought (>30 and <70).
Buy on a pullback or breakout.
๐ท 3. Set Stop Loss
Always protect your capital:๐ฅ
Below the recent swing low (for buys).
Above the recent swing high (for sells).
Or use ATR (Average True Range) to calculate a volatility-based stop.
๐ท 4. Set Take Profit
Let winners run:๐ฏ๐ฏ
Use Risk:Reward ratio (e.g., 1:2 or 1:3).
Or trail your stop loss with a moving average.
Fibonacci levels can also help set TP zones.
๐ท 5. Risk Management
Never risk more than 1โ2% of your capital per trade.
Use proper position sizing.
Avoid overtrading.
๐๐ Example Tools & Indicators:
โ EMA (20, 50, 200)
โ RSI (14)
โ MACD (for momentum)
โ ADX (for trend strength)
โ Trendlines & Price Action
๐๐ Tips:
Donโt trade against the trend unless you're very experienced๐
