Contract Key Point Strategy | A profitable approach that even beginners can grasp, with recent practical examples of ETH
🔥 Tired of getting cut when trading contracts? Stop blindly chasing orders!
After trying various strategies, the 'Key Point Strategy' is still the most suitable for newcomers - just focus on key positions, clear signals without confusion, and defined take profit and stop loss, suitable for both short-term and swing trading!
Today I’ll share the practical process that I’ve kept under wraps. After reading, you can directly copy the homework👇 (At the end, attached is the latest #ETH short position case, current $ETH price 3020 can be referenced directly)
💡 Core Logic: Follow the 'Consensus Position' to drink soup
Prices at key points (like whole numbers such as 3000, 3200, or previous highs and lows) will form a 'cost area recognized by everyone'. Once breached, it triggers a large number of chase orders and stop losses, directly amplifying the trend! What we need to do is 'wait for signals, follow the rhythm'.
📝 Six-step practical operation｜From finding positions to taking profits, not missing a step
1️⃣ First find the 'battlefield': Lock key points in 3 seconds
Don't stare at the market blindly; focus on these 5 types of positions, just open TradingView and draw a line to get it done:
✅ Whole number psychological position: $ETH 3000/3100/3200 this kind, funds love to game here (current ETH 3020 is in the breakthrough area below 3100)
✅ Previous highs and lows: Highs/lows tested more than twice in the last 3 months (for example, ETH rebounded after falling to 3000 in early November, then dropped again in December and retested 3000 support, this is a strong support level)
✅ Dense trading zone: K lines clustered together, sudden increase in volume (this is where the chips are, breaking it will definitely move)
✅ Moving averages/trend lines: 20-day, 50-day moving averages, or rising/falling lines connecting highs and lows (simple and useful)
✅ Gap: The place where the market gaps at the opening, is likely to come back and fill, once filled it will reverse
2️⃣ Redefine 'direction': Multi-cycle resonance does not go against the trend
The most common mistake beginners make: opening positions by looking at the 15-minute chart! Remember 'big cycles determine direction, small cycles find timing':
📈 Big cycle (daily/4H): Check if the moving average is bullish (short-term above long-term), whether the MACD is red or green, to determine the main trend
⏰ Small cycle (1H/30M): Wait for the big cycle direction to become clear, find entry points in the small cycle, absolutely do not trade against the big trend!
3️⃣ Confirmation signal: 3 conditions to filter out false breakouts
Don't just buy because it broke! Must meet these 3 points, the win rate doubles directly:
✨ Breakout long: Closing price stabilizes at the key point + volume increases (more than 50% compared to the previous K) + bullish K line appears (for example, engulfing, hammer)
✨ Break down short: Closing price crashes below the key point + volume + bearish K line appears (dark cloud cover, evening star)
❌ False breakout filter: Did it pull back immediately after breaking out and didn't stabilize? Or did it pull back after breaking down? Hurry up and run, don't get stuck!
4️⃣ Risk control lifeline: Don't set stop losses and positions randomly
Whether contracts make money depends on the market, and whether you can survive long depends on risk control! If this step is wrong, you go straight to zero:
🛡️ Stop loss: For long positions set at the lower edge of the key point -1% (for example, ETH breaks above 3100, open position at 3140, stop loss at 3108.6≈3109); for short positions set at the upper edge of the key point +0.3%-0.5% (for example, ETH breaks below 3100, open position at 3045, stop loss at 3100 + 0.35% = 3111), or use ATR indicator (1.5 times ATR is safer, if the current ATR value is 18, short stop loss = 3045 + 27 = 3072, suitable for short-term volatility)
⚖️ Position: Maximum 10% position per trade, total position not exceeding 30%! Ensure single risk is controlled within 1-2% of the account, even if you lose you can recover
5️⃣ Lock in profits: Don't be greedy when taking profits, trailing stop loss is the way
Many people make profits and then lose them back because they don't take profits! Remember 'batch take profit + trailing stop loss':
📲 Trailing profit: When profit reaches 2 times the risk, move the stop loss to the break-even line; when profit reaches 3 times, use ATR to track stop loss, let the profits run
🎯 Target position: First look at the next key position (for example, after ETH breaks below 3100, open position at 3045, first look at 2950), or according to 1:2.5 risk-reward ratio (stop loss 66 points, take profit 165 points, corresponding to 2880 better fitting trend space)
✂️ Batch exit: First target profit 50%, second target stop 30%, remaining 20% kept for a big market trend
6️⃣ Review and optimize: Don't let the money you earned go to waste
Spend 5 minutes filling out a form after each trade, and a month later you will thank yourself:
Record content: Target (ETH), key position, time frame used, entry signal, stop loss and take profit points, risk-reward ratio, result
Statistics on win rate and risk-reward ratio, gradually adjust parameters, the strategy will become more suitable for you
📊 Real case｜ETH 4H short position, earned 62 points in 2 days (current price 3020 can be replicated)
Beginner's pitfall reminder: Currently, ETH is at 3020, in a consolidation period after breaking below 3100. When trading, wait for a pullback to confirm resistance at 3050-3060 before entering, to reduce the risk of chasing a short position
1. Key point: ETH 3100 (whole number + original strong support + whale holding area) — current price 3020, in the confirmation phase after breaking down
2. Cycle: Daily moving average turning down (after the December rebound, it weakens again), 4H line breaks the 3100 key point and dips to 2980
3. Signal: 4H closing price 3036 + volume increase 40% (compared to the previous K line) + bearish engulfing K line + 1H MACD death cross — at this time open position at 3045, just at the pullback point after signal confirmation, higher safety
🎁 Welfare time
4. Operation: Open position at 3045, stop loss at 3111 (3100 + 0.35%, accurately covering key pressure to avoid false breaks), position size 5% (single risk ≤ 1.4%, meets risk control requirements), take profit at 2950 (1:1.45 risk-reward ratio, if looking for a larger space can extend to 2880, risk-reward ratio reaches 1:2.5)
5. Result: Dropped to 2950 after 2 days, first take profit 50% position (profit 47.5 points/contract); remaining 50% tracked by ATR trailing stop loss (ATR value 18, trailing stop loss = 2950 + 27 = 2977) held, later triggered exit when it dropped to 2890, total profit 107 points, yield increased to 3.5%
Comment 'key point strategy' in the comments section, I will send you the 'trading plan Excel template' + 'TradingView line drawing tutorial', helping you avoid 3 months of detours!
What do you usually find most troublesome about contracts, finding points or controlling positions? Let's chat in the comments section, next time I'll provide targeted content 👇
11.30: +50 points
12.1: +26 points
12.2: +100 points
12.3: -50 points
12.4: +63
11.5: +119
