If you are engaged in contract trading, the following 5 tips may help you. Remember to bookmark and like!
1. Technical Analysis
Daily focus on daily candlestick patterns, comparing with the previous day's candlestick characteristics; pay close attention to changes in resistance and support levels. If there are no changes, maintain the original strategy; if there is movement, adjust the operation approach accordingly.
2. Market Strength Assessment
Continuous rises or falls often indicate trend reversals; however, if key levels are not broken, so-called 'rockets' or 'waterfalls' are mostly short-term fluctuations, making high selling and low buying the preferred choice at this time.
3. Adherence to Operating Principles
Although short-term trading allows participation in both long and short positions, it is essential to clarify the overall trend. If in a period of adjustment after a long-term decline, be especially cautious when going long; if in a long-term uptrend, remain vigilant when going short.
4. Long and Short Direction Identification
Whether going long or short, closely monitor the day's high and low points. If the day's high and low points break through the previous day's range, it often indicates a shift in long and short strength, which can serve as a simple basis for direction judgment.
5. Amplitude Signal Interpretation
When the amplitude is within the previous day's high and low points, the market is relatively stable; however, if it shrinks to an extreme with low trading volume, it often indicates a precursor to a trend change, requiring close attention. If the day's high and low points break through the previous day's range and the amplitude expands, focus on the breakthrough situation of key support and resistance levels. If not broken, it indicates range consolidation, but there is still operational space.