When trading with the 20-day moving average, it is essential to adhere closely to the core logic of "moving average determines direction, candlestick provides signals, position controls risk." The specific operational details are as follows:

Moving Average Direction: First look at the slope of the 20-day moving average — when it is sloping upward, the main direction is bullish, only long positions are taken; when it is sloping downward, the direction is bearish, only short positions are taken; when it is flat, it is considered a sideways pause in trading. The direction of the moving average on the 4-hour chart is more stable and more suitable for beginners to refer to first.

Candlestick signals: For a long position, the price must stabilize above the moving average, and the closing price of two consecutive Candlesticks must be above the moving average, with the second Candlestick not falling below the moving average, which is considered a valid signal; for a short position, the price must fall below the moving average, with two consecutive Candlesticks closing below it and not rebounding above the moving average. A single Candlestick breakout does not count, to avoid false signals.

Position control risk: When the trend is clear (the slope of the moving average is steep, and the price is far from the moving average), a position of 50-70% can be established; when the trend is flat (the slope of the moving average is small, and the price is close to the moving average), only a position of 20-30% can be established for spot trading. For Ethereum contracts, set the stop loss 20-30 points outside the extreme value of the entry candlestick, suitable for short-term trading on the 15-minute or hourly chart, with a smaller stop loss possible on the 5-minute chart. Take profit at previous highs or lows or when the moving average changes direction—if a long position breaks below the moving average and cannot recover, immediately close the position, and the same applies to short positions.

Remember: Do not open positions against the direction of the moving average, do not enter when the Candlestick signals are unclear, and do not over-leverage on single-sided bets. Simple logic + strict execution of ten Position management is essential for making each trade well-founded.