Simplified Approach to Trade Management

The overall and OVERLY SIMPLIFIED approach I have is

• ●Is XXX is D1 uptrend ?

Yes -> Look primarily for long on H4 trend retests,

No -> Don’t even think about longs.

• ●Is XXX in H4 uptrend within D1 uptrend ?

Yes -> Continue to chase longs on H4 trend retests as long as defended,

No -> Wait for H4 uptrend to be reclaimed or D1 uptrend lower to be retested before considering adding/re entering -> IE either play the gap fills lower, either wait for retests.

The D1 trend will affect my general bias toward XXX, the H4 trend will often affect how I actively manage the position.

I have a rule for when the H4 trend does NOT get respected (lost and reclaimed constantly), and it’s usually to stay the fuck out and come back to a D1 focus until chart « reset » (ie H4 trend flat, H4 100 MA and H4 200 EMA at same value than H4 trend).

So I have a set of additional rules

• ●I never bid a first trend retest after reclaim (ie I never bid D1 trend retest from above after a period of D1 downtrend for example, it often helps avoiding traps).
• ●I always prefer bidding H4 trend reclaims than D1 trend retests (because once D1 trend retested and H4 trend reclaimed you have strength confirmations and are most likely buying into momentum [see early Jan H4 trend + H4 200 EMA reclaim on BTC, or even last week 21.8-22.0k reclaim to have an understanding of what I’m saying],
• ●If H4 trend not respected most likely means asset needs consolidation period == most likely not interesting to actively scalp == stay focus on D1 trend and don’t get chopped for nothing.

A few H4 200 EMA examples

Just wanted to share these two examples of the power of H4 200 EMA on trending assets. Simply entering and exiting on reclaim/losses of H4 200 EMA would have been one hell of a swing trade on LINK/USDT and MKR/USDT.

Keep an eye on this one and become a 200 EMA maximalist like myself. kek

Charts

MKR/USDT - H4

LINK/USDT - H4