Krujeab manual

📈 Hybrid Trading Strategy: Trend + RSI + ATR

This strategy combines three powerful tools to increase the probability of successful trades by aligning entries with the dominant trend, confirming with momentum, and managing exits with dynamic volatility-based targets.

1. Identify the Main Trend

• Use a higher timeframe (e.g., H4 or Daily) to determine the overall market direction.

• Apply a trend indicator such as the 50-period or 200-period Exponential Moving Average (EMA).

• Bullish trend: Price is above the EMA.

• Bearish trend: Price is below the EMA.

2. Entry Confirmation Using RSI

• Switch to a lower timeframe (e.g., H1 or M30) for trade entry.

• Use the Relative Strength Index (RSI) with a 14-period setting.

• In a bullish trend, look for RSI pullbacks below 50 and then crossing back above it — a signal of bullish momentum returning.

• In a bearish trend, look for RSI to rise above 50 and then drop back below it — signaling momentum resuming downward.

3. Set TP and SL Using ATR

• Use the Average True Range (ATR) to calculate dynamic Stop Loss (SL) and Take Profit (TP) levels based on market volatility.

• Recommended settings: ATR(14) on the same timeframe as your entry.

• Set:

  • Stop Loss = Entry Price ± (1.5 × ATR)

  • Take Profit = Entry Price ± (2.5 × ATR)

(Use "+" for long trades, and "–" for short trades.)

This ensures the SL/TP adapt to changing market conditions and avoids fixed pip distances that may not suit volatility.

✅ Example:

• Trend: Price is above the 200 EMA on H4 (bullish trend)

• RSI on H1: Pulls back below 50, then crosses above 50 again

• ATR(14) on H1: 25 pips

• Entry: Buy at 1.2000

• SL: 1.2000 – (1.5 × 25) = 1.1962

• TP: 1.2000 + (2.5 × 25) = 1.2062