Crypto contract trading is essentially a game of short-term direction, volatility, and counterparty sentiment. Based on contract trading priorities, I categorize them into four types:


First priority: Sentiment and position game (determining "what the counterparty thinks"), mainly looking at funding rate, long/short ratio of large accounts, overall long/short ratio, and active buy/sell ratio.
Contract tip: When the funding rate > 0.01% and the long/short ratio > 1.5, prioritize finding opportunities to short; when the rate turns negative (shorts pay), then consider bottom-fishing long.
Second priority: Trend and momentum (determining "whether to go with or against the trend"), mainly looking at MA lines, MACD, ADX; Contract tip: ADX=12 tells you that it is not a unilateral market right now, and any chasing of highs or lows is likely to get stopped out.
Third priority: Overbought/oversold and volatility extremes (determining "entry points"), mainly looking at RSI, KDJ, Bollinger Bands.
Contract tip: Entry point → RSI(6)=20.27. It tells you "short-term drop is too sharp, wait for a rebound then short, don't chase shorts."
Fourth priority: Support/resistance and price movement range (determining "take profit and stop loss levels"), mainly looking at support levels, resistance levels, ATR, DMI.
Contract tip: If ADX is trendless, and DMI- dominates, it indicates sentiment is overheated, wait for a rebound.
10 days of lead trading with a stable return of 15.5%. Hurry up and follow the trades to make some profits.
View Original
post-image
post-image
[The user has shared his/her trading data. Go to the App to view more.]
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 2
  • Repost
  • Share
Comment
Add a comment
Add a comment
NightAuditBuddy
· 49m ago
ADX<20 indeed means you should stay on the sidelines, but many people can't control themselves. The fourth-priority ATR stop loss setting has saved me a few times, much more scientific than fixed level stops.
View OriginalReply0
View More
  • Pinned