Today we will talk about the opening and closing principles of contracts, how to look at the direction, when to enter the market, etc.
① Look at the direction:
First, we must find the support and resistance levels. The best way is to look at the EMA (moving average) and judge whether the current market is an airdrop or a long market according to different levels.
② Opening a position:
Take the current Binance perpetual contract BTC as an example. Please see the screenshot for details. It is determined that it is very difficult to break through at the 4-hour level. The pressure level is very obvious. You can consider opening a position at this position. It is best to poke a needle when the big cake is pulled up, and then open an order when it comes down. The stop loss point is set above the moving average, which will be relatively safer and the profit and loss ratio will be much higher.
③ Closing a position:
Take BTC as an example. When closing a position, you must look at the 1-hour support level. Switch directly to the second picture. When I participated in the space opened by @Rabbit_2 in Binance Square today, this position only had a small downward trend. It has not reached this position. When I started writing this copy, it had already fallen below. You can use this case to think about how to close a position in the future.
④Timing of entry:
This depends on the small level. The large level depends on the direction. For small-level entry, for example, if you want to open a short position, you need to look at the 1-minute, 5-minute, and 15-minute trends. Is it very weak? I will take another very weak picture for you to see. The third and fourth pictures (the fourth picture is very obvious) are very weak. When it starts to move and cannot rebound, you can enter the market. Observe its trend at any time. If it suddenly becomes strong, be careful.
Figure 1: 4-hour pressure level
Figure 2: 1-hour support level
Figure 3: 1-minute moving average trend
Figure 4: 5-minute moving average trend
