#TrendTradingStrategy #TrendTradingStrategy
Effective Trend Strategy
Core Principles:
✅ Follow the market trend: Only trade in the direction of the main trend (daily/weekly)
✅ Triple Confirmation:
- Moving Average 50 > 200 (Golden Cross)
- Increased trading volume on bullish candles
- Relative Strength Index between 40-80 (upward trend) or 20-60 (downward trend)
✅ Strict Management: Maximum stop loss of 2% per trade. Trading Mechanisms
1. Determine the trend:
- Daily chart: At least 3 rising/falling peaks (upward) or troughs (downward)
- Exponential Moving Average 20 > Exponential Moving Average 50 > Exponential Moving Average 200 (confirmed upward trend)
2. Entry:
- Upward trend: Buy on a pullback to support level (e.g., Fibonacci 38.2% or Exponential Moving Average 20)
- Downward trend: Sell on a resistance retest
3. Management:
- Trailing stop: Adjust to the last rising peak (upward) or falling peak (downward)
- Partial profit-taking at key levels (50% at target 1)
⚠️ Strategy Alerts
❗ False Reversals: Only trade after confirming two closed candles in the new direction
❗ Risk Events:
- Federal Open Market Committee (July 30) - Impact on the dollar and commodities
- Earnings Reports (TSLA on July 25)