This strategy is a trend-following trading strategy tailored for BTC/USDT pairs on the 1-hour timeframe. It focuses on identifying and riding significant market trends, minimizing risk, and maximizing profits by using technical indicators and clear decision-making frameworks.

Here’s an outline of the strategy:

Core Principles

1. Follow the Trend: Only trade in the direction of a confirmed trend.
   • Bullish Trend: When price consistently moves above key levels (e.g., MA50 > MA200) and indicators confirm upward momentum.
   • Bearish Trend: When price consistently moves below key levels (e.g., MA50 < MA200) with downward momentum.
2. Avoid Ranging Markets: Wait for clear breakouts or trend confirmations to avoid false signals.
3. Risk Management:
   • Use stop-loss orders to protect against losses.
   • Identify and respect key support and resistance levels for entries and exits.
     

     Bullish Trend example

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       Bullish Trend (First Diagram)

       • Price Movement: The price consistently moves upward, staying above key moving averages (MA50 and MA200).
       • Indicators:
         • The MA50 (green dashed line) is above the MA200 (red dashed line), confirming an upward trend.
         • Price forms higher highs and higher lows, staying above key support levels (gray line at 60).
       • Key Levels:
         • Support Level: Price tends to bounce back when nearing the support level.
         • Resistance Level: Price approaches and potentially breaks resistance, indicating strength.

Bearish Trend Example

Bearish Trend (Second Diagram)

• Price Movement: The price consistently moves downward, staying below the key moving averages (MA50 and MA200).
• Indicators:
  • The MA50 is below the MA200, confirming a downtrend.
  • Price forms lower highs and lower lows, moving away from resistance levels (black line at 100).
• Key Levels:
  • Resistance Level: Acts as a ceiling where price retraces during rallies.
  • Support Level: Price may briefly bounce but continues downward momentum.

Key Takeaways:

1. Bullish Trends: Look for upward price movements above both MA50 and MA200. Wait for price pullbacks to enter near support levels.
2. Bearish Trends: Look for downward price movements below both MA50 and MA200. Avoid buying until a trend reversal is clear.
3. Avoid Ranging Markets: When MA50 and MA200 lines are close together and price fluctuates without direction, wait for a breakout.
   

   Application:

   • Risk Management: Use stop-loss orders just below support levels in bullish trends or above resistance in bearish trends to minimize losses.
   • Trade Entries:
     • Enter trades when price confirms trends near moving averages and key levels.
     • Avoid trades in uncertain or ranging market conditions.

Key Indicators Used

1. Moving Averages (MA50 & MA200):
   • MA50 crossing above MA200 = bullish crossover.
   • MA50 crossing below MA200 = bearish crossover.

     

     Moving Averages (MA50 & MA200)

     • Bullish Crossover: When the MA50 (green line) crosses above the MA200 (red line), it signals a bullish trend. This is marked near time 60.
     • Bearish Crossover: When the MA50 crosses below the MA200, it signals a bearish trend. This is marked near time 90.

2. Average Directional Index (ADX):
   • ADX > 25: Strong trend.
   • ADX < 20: Weak or ranging market.

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     Average Directional Index (ADX)

     • ADX > 25: Indicates a strong trend. The trend can be bullish or bearish, depending on other indicators.
     • ADX < 20: Indicates a weak or ranging market. Avoid trading during such periods.
3. Relative Strength Index (RSI):
   • RSI > 50: Momentum favors buyers (bullish).
   • RSI < 50: Momentum favors sellers (bearish).
   • Overbought (>70) and oversold (<30) levels indicate potential reversals.

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     Relative Strength Index (RSI)

     • Overbought (>70): Indicates potential reversal or price correction from upward momentum.
     • Oversold (<30): Indicates potential reversal or price recovery from downward momentum.
     • RSI > 50: Momentum favors buyers (bullish).
     • RSI < 50: Momentum favors sellers (bearish).
4. MACD (Moving Average Convergence Divergence):
   • Positive crossover (MACD line > Signal line): Bullish momentum.
   • Negative crossover (MACD line < Signal line): Bearish momentum.

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     MACD (Moving Average Convergence Divergence)

     • Positive Crossover: The MACD line (blue) crossing above the Signal line (orange) indicates bullish momentum.
     • Negative Crossover: The MACD line crossing below the Signal line indicates bearish momentum.
     • Zero Line: Acts as a reference point for momentum direction.
5. Parabolic SAR:
   • Dots below the price = bullish trend.
   • Dots above the price = bearish trend.
     • Dots Below the Price: Indicates a bullish trend, where prices are expected to rise.
     • Dots Above the Price: Indicates a bearish trend, where prices are expected to fall.

       

       Parabolic SAR

       • Dots Below the Price: Indicates a bullish trend, where prices are expected to rise.
       • Dots Above the Price: Indicates a bearish trend, where prices are expected to fall.

       Summary:

       These indicators are tools to confirm trends and reversals:

       1. Use Moving Averages for identifying crossovers.
       2. Use ADX to measure trend strength.
       3. Monitor RSI for momentum and reversal signals.
       4. Use MACD to confirm bullish or bearish momentum.
       5. Use Parabolic SAR for trend direction and potential stop-loss placement.

6. Volume:
   • Volume spikes confirm the strength of breakouts or trends.

Process for New Positions

1. Analyze Trend:
   • Check MA crossovers and ADX for trend direction and strength.
   • Confirm with RSI, MACD, and Parabolic SAR.
2. Identify Entry Points:
   • Breakouts above resistance or below support.
   • Trend continuation signals (e.g., price bouncing off moving averages in a strong trend).
3. Set Stop-Loss and Take-Profit:
   • Place stop-loss below support for long positions or above resistance for short positions.
   • Set multiple take-profit levels to scale out gains.
4. Wait for Confirmation:
   • Avoid impulsive entries. Wait for multiple indicators to align.