Full analysis of trading strategies: Taking BTC as an example, revealing the four-step method of efficient trading
1. Insight into the wind direction: the key to finding support and pressure
To understand the pulse of the market, the first task is to locate the support and pressure levels. And EMA (moving average) is our compass, which can help us judge whether it is a long carnival or a short feast. EMA at different levels will reveal the true face of the market for you.
2. Accurate opening of positions: seize the opportunity and strike steadily
Take Binance perpetual contract BTC as an example (see the attached picture for details), when the 4-hour chart shows that the breakthrough is weak and the pressure level is as solid as a rock, this is the perfect time to open a position. Imagine that the big cake (BTC) soars into the sky like a rocket, but quickly falls back. This is a good time to enter the market and short. Setting the stop loss point above the moving average can not only ensure safety, but also improve the profit and loss ratio. Why not?
3. Smart closing: flexible response and stable income
The art of closing a position is to capture the 1-hour support level. Taking @颜驰Bit's space sharing in Binance Square as an example, when the market shows only a weak downward trend and has not yet reached the predetermined position, it is the best time to think about the closing strategy. As I wrote this copy, BTC has fallen below the key support, which is the actual closing signal. Take this as a lesson, and you will learn how to exit gracefully in future transactions.
4. Capture the opportunity to enter the market: micro perspective, capture the ever-changing
To grasp the timing of entry, we need to focus on small-level charts. The large level determines the direction, and the small level guides the way to enter the market. If you want to open a short order, you need to keep an eye on the 1-minute, 5-minute, and 15-minute trends, looking for those moments when the trend is weak and the rebound is weak. Attached Figures 3 and 4 are excellent examples. When the market is faltering and the rebound is weak, it is the best time for you to enter the market decisively. However, the market changes rapidly. Once it shows signs of a strong rebound, you need to be vigilant and ready to adjust your strategy at any time.
