1️⃣ Determine the market direction: spot vs. contract
Whether it is spot or contract, the choice of direction is crucial. Daily, weekly and 4-hour lines are all good tools for judging trends. If the price is below the moving average, it means that the current market is short and you need to be cautious when going long; on the contrary, if the price is above the moving average, it is a long market and you need to be careful when going short. For contract operations, the risk is much higher than spot. It is recommended to allocate fixed funds for contracts and use 50% or more of each profit for spot reserves to ensure that even if the contract is liquidated, part of the principal can be retained. 💡
2️⃣ Opening skills: Find key breakthrough points
Taking BTC perpetual contract as an example, if the 4-hour line shows that it is difficult to break through the pressure level, you can consider opening a short order at this position. Ideally, the price will rise in the short term and then fall back quickly, and it will be safer to open an order at this time. Set the stop loss above the moving average to ensure a better profit and loss ratio. 🎯
3️⃣ Closing time: the use of resistance and pressure
When closing a position, you need to pay attention to the pressure and support level on the moving average. If you encounter strong resistance or support, it is recommended to take short-term profit and then look for opportunities to open an order; otherwise, you can continue to hold the position. ⚖️
4️⃣ Entry strategy: The importance of small-scale trends
Judge the trend at a large level and choose to enter the market at a small level. Taking short orders as an example, weak trends at the 1-minute, 5-minute, and 15-minute levels are the best entry points. When the trend rebounds weakly, you can open a short order; if it suddenly turns strong, you should decisively stop loss and exit. ⏱️
5️⃣ Trend lines: additional reference for support and resistance
Draw a trend line by connecting three points, and the extended line can help find support and resistance levels. The use of trend lines is similar to moving averages and is an effective tool for finding buying and selling points. 📉
6️⃣ Divergence: Signals for taking profit and opening positions
Divergence can be divided into top and bottom divergence. Top divergence is like the signal that appeared on MACD after BTC broke through $70,000 some time ago, which prompted selling. Bottom divergence can be used as an opportunity to open or increase positions. 📈
📌 Summary: The core of buying low and selling high lies in technical analysis. Whether it is spot or contract, mastering the market direction, opening and closing skills and key signals are the key to profit. 🚀
🔔 Note: I used some pictures from the previous copy, you can just refer to this idea. You need to find the pattern, don't just copy it blindly! ✅
