Simple Trend Strategy That Works For Crypto, Forex And Stock Trading
This might be the most accurate trend trading strategy. Trading support and resistance levels in the direction of the trend is a simple trend strategy that actually works.
Most members are profitable trading this strategy on the 1-minute chart taking 5 minute expiration trades on this platform.
You can trade this strategy on any market and time frame. Traders use it for swing trading the daily chart as well as day trading the 1-minute and 1-hour charts.
The main reason this system and strategy works is that it combines price action and technical analysis techniques (confluence) into a simple step by step trading process.
What Is Trend Trading?
Trend trading is an trading method that involves identifying and following the current trend and taking trades in that direction.
The goal of trend trading is to profit on the momentum of the market trend.
Buy low and sell high.
Or buy high and sell higher.
One of the key advantages of trend trading is that it can be a relatively simple and straightforward strategy to follow making it the best trading method for beginners.
Some of the best traders in the world use the trend trading method.
Trend trading is also more forgiving than reversal trading, because even if you miss the best entry point and enter a little late, if the market is trending you can usually still make a good profit on your trade when price keep moving in the direction of the trend.
Accurate Trend Trading Strategy
You can use this strategy on any time frame and market (forex, crypto, stocks, commodities, indices, etc.). It works just as well for scalping indices on a 1-minute chart, day trading forex on a 1-hour chart, and swing trading stocks on a daily chart.
Is this a trend strategy that works every time?
No, of course not. No strategy can guarantee that.
But when you trade with a good risk reward ratio, you don't need to win every time.
This the simple step by step process for this trend trading strategy I follow to find the best entry points, stop loss, and take profit levels and to trade this strategy successfully.
1. Identify The Trend
Open a chart for the market and time frame on the charting platform of your choice for the market you want to trade. Analyze swing highs and lows (tops and bottoms) on the chart to identify the current trend in the market.
If price is making higher highs and higher lows, the the market trend bullish (rising).
If price is making lower highs and lower lows, the the market trend bearish (falling).
2. Draw Support And Resistance Lines
In a bullish trend, you can draw a horizontal line from a top (resistance) once price move above it (resistance becomes support).
In a bearish trend, you can draw a horizontal line from a low (support) once price move below it (support becomes resistance).
3. Find Your Entry And Exit Points
Now you can find where you want to enter and exit your trades based on your analysis of the trend, support/resistance lines, and a 10X Trading System buy or sell signal.
In a bullish trend, you want to enter a trade if you get a 10X buy signal at a support level. You can place stop loss below the green signal dot and take profit (exit) when you get a red 10X sell signal.
Here are a few buy signals I traded following this simple trend strategy:
EURUSD 5-minute chart by TradingView
In a bearish trend, you want to enter a short trade if you get a 10X sell signal at a resistance level. You can place stop loss above the red 10X signal dot and take profit (exit) when you get a green 10X buy signal.
Here are a few sell signals I traded following this simple trend strategy:
EURUSD 1-hour chart by TradingView
Trend Following Stop Loss Technique
EURUSD 1-minute chart by TradingView
This stop loss technique is very simple and will help you get higher risk reward ratio.
It works great on all time frames when you trade trend signals.
You basically just wait for these two things to happen:
1. A candlestick to close below the exponential moving average period 8.
2. Price move below the low of that candlestick on the next one.
EURUSD 1-minute chart by TradingView
Following the trailing stop loss would have resulted in a trade with a risk reward ratio of 11.8.
How To Become A Profitable Trader
The entry is not the only thing that is important for consistent and profitable trend trading. Correct stop loss and take profit placement is also very important.
Most beginner traders are usually not told this when they first start trading, instead, they get some "education" from a broker or some other unreliable source on how to trade the market.
This sadly often leads to blown accounts and giving up.
There is however a way you can succeed in trading without blown accounts. You succeed by following simple rules and a strategy like this trend strategy that works.
Simple rules like not risking too much, staying disciplined, and following a strategy with reliable signals.
I have masters degree in risk management and 13 years of experience trading full-time, so I know what I'm talking about.
The 10X Trading System will give you top and bottom signals based on price action, trends, and levels. Its signals are non-repaint and non-lagging so you can trade both trends and trend reversals with and edge..
Johan Nordstrom is a full-time trader, and a family guy in his early 30's who trades the markets in a simple yet effective way. He has a master's degree in risk management and years of experience trading the markets. He has helped hundreds of struggling traders become consistently profitable. Read more.
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