Contract trading is essentially a game of strategy.

Based on actual trading priority, it can be divided into four categories:
No.1: Sentiment and Chip Game – determines "what the counterparty is thinking", mainly looking at funding rate, long/short ratio of large accounts, overall long/short ratio, and active buy/sell ratio.
(Tip: When funding rate > 0.01% and long/short ratio > 1.5, prioritize finding opportunities to short; when the funding rate turns negative (short pay), then consider going long at the bottom.)

No.2: Trend and Momentum – determines "whether to follow the trend", mainly looking at MA moving averages, MACD, ADX;
(Tip: ADX=12 tells you that it is not a trending market, and any chasing of ups and downs is likely to get stopped out.)

No.3: Overbought/Oversold and Volatility Extremes – "entry points", mainly looking at RSI, KDJ, Bollinger Bands.
(Tip: Entry point → RSI(6)=20.27. It tells you "the short-term drop is too sharp, wait for a rebound to short, do not chase shorts".)

No.4: Support/Resistance and Volatility Range – "take profit and stop loss levels", mainly looking at support levels, resistance levels, ATR, DMI.
(Tip: If ADX shows no trend and DMI- dominates, it indicates excessive sentiment and to wait for a rebound.)
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