Strategy 01 · Momentum · All Markets

Trend Following

Ride macro price trends using moving averages and momentum indicators. The strategy with the highest win rate for beginners when properly executed.

BeginnerDaily TF
Difficulty

How it works

Identify a trending market using the 20/50/200 EMA stack. Enter on pullbacks to the 20 EMA in the direction of the trend. Hold until trend reversal or pre-set target.

Entry signals

  • Price above 200 EMA (uptrend)
  • Pullback to 20 EMA
  • Bullish candle confirmation
  • Volume expansion on entry

Risk management

Stop loss below the most recent swing low. Target: 2-3x the stop distance. Max 1% account risk per trade. Works best on daily and 4H timeframes.

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