📈 Trend Trading Strategy Simplified
Objective: Trade in the direction of the dominant market trend.
Best Timeframes: 1H, 4H, or Daily charts
Key Tools:
EMA 20 & EMA 50
RSI (Relative Strength Index)
Price structure (higher highs/lows or lower highs/lows)
Support and resistance levels
✅ How It Works
1. Spot the Trend
Use moving averages:
Uptrend: EMA 20 above EMA 50, both pointing up
Downtrend: EMA 20 below EMA 50, both sloping down
📌 Confirm with price action:
Uptrend = higher highs & higher lows
Downtrend = lower highs & lower lows
2. Wait for a Pullback
Let price retrace toward EMAs or a key level.
Look for RSI to dip between 40–60 — a healthy pullback zone.
3. Entry Criteria
Enter when:
Price pulls back to the 20 or 50 EMA
A clear candle signal forms (e.g. engulfing, pin bar)
RSI resumes in trend direction (above 50 for longs, below 50 for shorts)
4. Stop Loss Placement
In uptrends: below the latest swing low
In downtrends: above the latest swing high
5. Profit Targets
Aim for at least a 1:2 risk-reward ratio
Use recent highs/lows as target levels
Optionally trail your stop using the 20 EMA to ride bigger moves
🧠 Bonus Tips
Don’t trade sideways markets
Higher timeframes = more reliable trends
Stick to strict risk management (1–2% per trade)
Always watch for major news events.