1️⃣ Identify the trend
• EMA50 > EMA200 → bullish market → look for only buys.
• EMA50 < EMA200 → bearish market → look for only sells.
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2️⃣ Mark key level
• Look for a recent high or low that the price has touched several times but has not broken yet.
• Example: resistance at $65,000 in BTC/USDT.
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3️⃣ Wait for the breakout with volume
• When the price breaks the level and closes above (buys) or below (sells), check that the volume of the candle is higher than the recent average.
• This confirms that it is not a false breakout due to low interest.
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4️⃣ Wait for the pullback
• After breaking, the price usually returns to “test” the broken level.
• Example: breaks $65,000 → rises to $65,500 → drops back towards $65,000.
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5️⃣ Entry signal
• Look for a confirmation candle in the direction of the trend:
• For buys: large green candle (bullish engulfing or hammer).
• For sells: large red candle (bearish engulfing or bearish pin bar).
• Entry 2–5 USDT above/below the confirmation level (for buys) or below (for sells).
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6️⃣ Stop-loss and Take Profit
• Stop-loss: just below the broken level (buys) or above (sells), or at 1 × ATR(14) if you use it.
• Take Profit:
• TP1 = distance equal to risk (R=1).
• TP2 = R=2 or next strong zone.
• TP3 optional = let it run as long as EMA50 does not break against.
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7️⃣ Example in Binance (BTC/USDT 1H)
1. EMA50 > EMA200 → bullish trend.
2. Resistance marked at $65,000.
3. Green candle breaks up to $65,500 with high volume.
4. Pullback drops to $65,050.
5. Bullish engulfing on pullback → entry at $65,070.
6. Stop at $64,900 (–170 USDT risk per BTC).
7. TP1 at $65,240, TP2 at $65,410.
8. Result: TP2 reached, trade closed in profit.