#TrendTradingStrategy

1 Identify the Trend

Use higher timeframes first:

• 4H and 1D charts for the main trend direction

• 15m–1H for entries within that trend

Tools to identify trend:

• EMA 50 / EMA 200

• Uptrend = Price above EMA 50 and EMA 50 above EMA 200

• Downtrend = Price below EMA 50 and EMA 50 below EMA 200

• ADX (Average Directional Index)

• ADX > 25 = strong trend

• ADX < 20 = weak/no trend

Optional: Use Trendlines or Market Structure (higher highs, higher lows / lower highs, lower lows)

2 Wait for Pullbacks

Never chase the top of a trend.

Wait for price to pull back to:

• EMA 50 (for strong trends)

• EMA 200 (for deeper pullbacks)

Or into a support/resistance zone

Confirm pullback with:

• RSI dipping to 40–50 in uptrend

• RSI rising to 50–60 in downtrend

3. Enter on Pullback Bounce

When price respects the EMA / support zone and starts bouncing:

• Enter long (in uptrend) on bullish candle close

• Enter short (in downtrend) on bearish candle close

Bonus: Enter at break of a minor counter-trendline within the pullback.

4. Stop-Loss Placement

• Below last swing low (uptrend)

• Above last swing high (downtrend)

Tight but safe:

• BTC: 0.8–1.5%

• Alts: 1.5–3%

5. Target Profit Levels

Use:

• Recent high/low

• Fib retracement / extension levels (e.g. 1.618 Fib extension)

• Or trail stop-loss as price continues in trend

Minimum Risk/Reward ratio: 1:2