Today, we'll dive into the essential principles of opening and closing contracts, understanding market direction, and identifying optimal entry points.

Click here Follow & VOTE on My Profile

1. Analyzing Market Direction: The first step in making informed trading decisions is to identify support and resistance levels. A practical approach is to use the EMA (Exponential Moving Average) to assess whether the market is leaning towards bearish or bullish tendencies.

2. Opening a Position: Let's use the BTC perpetual contract on Binance as an example. Based on a 4-hour chart analysis, if the market shows significant resistance at a certain level, this can be a strategic point to consider opening a position. Ideally, you should wait for the price to spike briefly, then enter a trade as it starts to drop. Setting your stop loss just above the EMA can offer better safety, enhancing the risk-to-reward ratio.

3. Closing a Position: When closing a position, such as in a BTC trade, it's crucial to monitor the 1-hour support levels closely. During a Binance Square session hosted by @颜驰Bit today, I noticed a slight downward movement that hadn’t reached the support level while writing this. However, by the time I finished, it had already broken through.

4. Timing Your Entry: The timing of market entry should be aligned with short-term trends while keeping an eye on the broader market direction. For instance, if you're considering a short position, examine the 1-minute, 5-minute, and 15-minute charts to gauge the market's strength. If the price action is weak and fails to rebound, it could be a good opportunity to enter.

By following these strategies, you'll be better equipped to navigate the complexities of contract trading, ensuring you make well-informed decisions at each step.

#BinanceBlockchainWeek #LowestCPI2021 #BlackRockETHOptions #BinanceHODLerBANANA #voteforBULLISHBANTER