Trading Strategy Triggers - Complete Guide

Professional Trading Strategies with Detailed Entry, Metrics, Confirmation & Risk Management

📈

Reversal (Bottom)

Entry Criteria: Price touches a major support zone (≤2% above 52-week low) on daily chart
📊 Metric Thresholds / Indicator Values
  • RSI(14) < 30
  • Stochastic (14, 3, 3) < 20
  • ATR(14) contraction (20% ↓)
✅ Confirmation Signals
  • Higher-low after initial bounce
  • Bullish RSI divergence
  • Volume ≥ 120% of 20-day avg
âš¡ Action & Risk Rules
  • Buy 50% of planned size
  • SL = 1% below new swing low
  • TP at next resistance for RR ≥ 2:1
📊

Pullback (Uptrend)

Entry Criteria: In a clear HH-HL uptrend, price retraces to MA20 or MA50 on 4h or daily
📊 Metric Thresholds / Indicator Values
  • Fibonacci retrace 38.2–61.8% of prior leg
  • RSI between 40–60
  • ADX(14) > 25
✅ Confirmation Signals
  • Candle closes above MA with body ≥ 50% of its range
  • Volume ≥ 20-day avg
âš¡ Action & Risk Rules
  • Buy 100% at close above MA
  • SL = just below MA (0.5%)
  • TP at latest swing high
🚀

Breakout (Horizontal)

Entry Criteria: Daily close ≥ 1% above horizontal resistance
📊 Metric Thresholds / Indicator Values
  • Volume on breakout ≥ 150% of 20-day avg volume
  • RSI > 60
  • VWAP and OBV trending up
✅ Confirmation Signals
  • Price pulls back and holds above old resistance (now support)
  • MACD histogram > 0
âš¡ Action & Risk Rules
  • Buy 80% at breakout close
  • SL = 0.5% below resistance line
  • Scale remaining 20% on successful retest
📰

News-Driven Dip

Entry Criteria: Sudden ≥ 15% drop on clear negative news, fundamentals unchanged (no downgrade) on 1h–4h chart
📊 Metric Thresholds / Indicator Values
  • RSI(1h) > 30 just before rebound
  • Crypto Fear & Greed Index < 20
✅ Confirmation Signals
  • 3 consecutive consolidating candles 1–4h
  • Volume declining over those candles
âš¡ Action & Risk Rules
  • DCA 25% each day over 4 days
  • SL on day 1 = 1% below day 1 low
🎯

Resistance Test

Entry Criteria: Price tests the same resistance zone ≥ 3 times within last 14 days and forms tightening range
📊 Metric Thresholds / Indicator Values
  • Price within ± 0.5% of resistance
  • Bollinger Band width ↓≥ 20% (squeeze)
  • RSI 45–55
✅ Confirmation Signals
  • Daily candle closes > 1% above resistance
  • Volume ≥ 150% of 20-day avg
  • MACD line > signal line
âš¡ Action & Risk Rules
  • Buy 50% at breakout close
  • SL = 1% below old resistance
  • Add 50% more on pullback hold above new support
🔄

Support Retest

Entry Criteria: After a confirmed daily breakout (> 2% above resistance), price pulls back to retest old resistance
📊 Metric Thresholds / Indicator Values
  • Retracement to 38.2–50% of the breakout candle
  • RSI > 40
✅ Confirmation Signals
  • Hammer or bullish engulfing at retest low
  • MACD line crosses above signal
  • OBV rising
âš¡ Action & Risk Rules
  • Buy 70% at confirmation candle close
  • SL = 0.5% below retest low
  • TP based on measured-move (RR 1:2)
Trigger Type Entry Criteria Metric Thresholds / Indicator Values Confirmation Signal Action & Risk Rules
📈 Reversal (Bottom)
Price touches a major support zone (≤2% above 52-week low) on daily chart • RSI(14) < 30
• Stochastic (14, 3, 3) < 20
• ATR(14) contraction (20% ↓)
• Higher-low after initial bounce
• Bullish RSI divergence
• Volume ≥ 120% of 20-day avg
• Buy 50% of planned size
• SL = 1% below new swing low
• TP at next resistance for RR ≥ 2:1
📊 Pullback (Uptrend)
In a clear HH-HL uptrend, price retraces to MA20 or MA50 on 4h or daily • Fibonacci retrace 38.2–61.8% of prior leg
• RSI between 40–60
• ADX(14) > 25
• Candle closes above MA with body ≥ 50% of its range
• Volume ≥ 20-day avg
• Buy 100% at close above MA
• SL = just below MA (0.5%)
• TP at latest swing high
🚀 Breakout (Horizontal)
Daily close ≥ 1% above horizontal resistance • Volume on breakout ≥ 150% of 20-day avg volume
• RSI > 60
• VWAP and OBV trending up
• Price pulls back and holds above old resistance (now support)
• MACD histogram > 0
• Buy 80% at breakout close
• SL = 0.5% below resistance line
• Scale remaining 20% on successful retest
📰 News-Driven Dip
Sudden ≥ 15% drop on clear negative news, fundamentals unchanged (no downgrade) on 1h–4h chart • RSI(1h) > 30 just before rebound
• Crypto Fear & Greed Index < 20
• 3 consecutive consolidating candles 1–4h
• Volume declining over those candles
• DCA 25% each day over 4 days
• SL on day 1 = 1% below day 1 low
🎯 Resistance Test
Price tests the same resistance zone ≥ 3 times within last 14 days and forms tightening range • Price within ± 0.5% of resistance
• Bollinger Band width ↓≥ 20% (squeeze)
• RSI 45–55
• Daily candle closes > 1% above resistance
• Volume ≥ 150% of 20-day avg
• MACD line > signal line
• Buy 50% at breakout close
• SL = 1% below old resistance
• Add 50% more on pullback hold above new support
🔄 Support Retest
After a confirmed daily breakout (> 2% above resistance), price pulls back to retest old resistance • Retracement to 38.2–50% of the breakout candle
• RSI > 40
• Hammer or bullish engulfing at retest low
• MACD line crosses above signal
• OBV rising
• Buy 70% at confirmation candle close
• SL = 0.5% below retest low
• TP based on measured-move (RR 1:2)

📖 Legend & Abbreviations

SL: Stop Loss
TP: Take Profit
RR: Risk-Reward Ratio
DCA: Dollar Cost Average
HH-HL: Higher Highs - Higher Lows
MA: Moving Average
RSI: Relative Strength Index
ADX: Average Directional Index
ATR: Average True Range
VWAP: Volume Weighted Average Price
OBV: On Balance Volume
MACD: Moving Average Convergence Divergence
BB: Bollinger Bands
Fib: Fibonacci