#TrendTradingStrategy A trend trading strategy is designed to identify and ride sustained price movements—uptrends or downtrends—typically using momentum, price structure, and confirmation tools.
if you're using the 1-hour timeframe, here’s a highly practical trend trading strategy tailored for that setup:
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📈 1-Hour Trend Trading Strategy (Crypto Focus)
✅ Core Idea
> “Trade in the direction of the dominant trend, enter on pullbacks, and ride momentum until signs of exhaustion.”
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🔧 Strategy Components
1. Trend Identification
Use a combination of price structure and moving averages.
Structure Rule: Higher highs + higher lows = uptrend
MAs:
EMA 20 (short-term momentum)
EMA 50 (trend filter)
📌 Rule: Only take long trades when price is above both EMAs and EMAs are sloping upward.
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2. Entry Trigger: Pullback + Confirmation
Wait for a pullback to dynamic support (EMA 20 or 50) with confirmation:
Bullish Setup Example:
Price pulls back to EMA zone
RSI dips below 50, then crosses back up
Bullish engulfing candle or pin bar at EMA
Volume spikes or OBV divergence
🔁 Same logic reversed for shorts in downtrends.
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3. Stop Loss & Take Profit
SL: Below the recent swing low (or ATR * 1.5)
TP Options:
2R–3R fixed risk/reward
Exit on close below EMA 20 (trailing stop)
Partial take profit at 1.5R and let the rest ride
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4. Risk Management
Risk 1% per trade
Never increase position size to chase drawdowns
Only trade when all conditions align (avoid sideways market)
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🧪 Example Setup Flow
1. ✅ Price above 20/50 EMA
2. ✅ Pullback into EMA 20/50 zone
3. ✅ RSI dips below 50 then crosses up
4. ✅ Bullish engulfing candle
5. ✅ Entry on next candle open
6. ✅ SL below pullback low, TP at 2R or trail
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🧠 Bonus Filters
Filter Benefit
Higher Timeframe Bias (4H) Trade in same direction as 4H trend
Volume Confirmation Prevents false breakouts
News Check Avoid trading near big macro events