🛠️ Introduction
A plan organizes your trades, reduces emotional decisions, and maximizes success. Here’s how to build a full crypto trading plan around candlestick signals.
Step 1: Define Your Trading Style
- Day trading, swing trading, or long-term investing?
- Choose timeframes accordingly (1H, 4H, 1D)
Step 2: Identify Candlestick Patterns to Use
- Pick your favorite high-probability patterns (e.g., Engulfing, Doji, Hammer)
- Learn how to interpret them with volume, RSI, MA
Step 3: Entry Rules
- Wait for candle close confirming pattern
- Confirm with support/resistance or indicators
- Use multi-timeframe analysis
Step 4: Exit Rules
- Set stop-loss based on candle lows/highs
- Use take-profit targets or trailing stops
- Exit on opposing candle pattern or loss of momentum
Step 5: Risk Management
- Define max risk per trade
- Position sizing rules
- Max daily loss limit to stop trading after big drawdowns
Step 6: Journal and Review
- Record every trade with notes on candle patterns and outcomes
- Review weekly/monthly for improvement
✅ Conclusion
Trading plans reduce guesswork and emotion. With candlestick signals at the core, your plan guides you consistently through volatile crypto markets.