Trend Following Strategy (Trend Following)



Logic Explanation: The core idea is "no prediction of tops and bottoms, just follow the trend." Enter when the price breaks through key resistance levels or when moving averages cross (dead cross/golden cross).

* Detailed Operations:

* Confirmation Period: Choose 4-hour or daily charts to confirm the main trend.

* Set Indicators: Commonly use EMA 20 (fast line) and EMA 60 (slow line).

* Entry Signal: When EMA 20 crosses above EMA 60 (golden cross), and the price retraces to the moving average without breaking below, open a long position.

* Stop Loss: Set slightly below EMA 60.

* Take Profit: Exit when the trend stabilizes or a reverse death cross occurs.

Case Study:

Suppose BTC has been ranging around 60,000 for a long time, then suddenly breaks out with high volume and stabilizes above 62,000. You observe a bullish alignment of the moving averages.

* Operation: Open long at 62,500 with 5x leverage.

* Stop Loss: 60,500 (previous low support).

* Result: BTC rises to 68,000, the moving averages show no sign of turning, so you continue holding until the trend weakens, capturing a significant profit.
$BTC
BTC-1,8%
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