Highlights ①. Gate Intermediate Futures Courses are designed to elevate traders to professional status by developing a robust futures trading system. These courses aim to enhance traders' skills comprehensively, covering investment philosophy, futures trading tools, and trading systems. ②. This section will introduce one of the essential trading skills: how to determine the trading direction for futures trading (taking BTC as an example).
1. BTC trends are highly correlated with the US stock market
As the crypto market grows, BTC has been adopted by traditional financial institutions and included in their investment portfolios. This has led to BTC's price movements becoming linked to the global financial market. BTC's price changes are closely related to the US stock market and are affected by factors like interest rates, inflation, unemployment, the US Treasury market, geopolitical events, and economic cycles.
The chart compares BTC and the NASDAQ index trends from the start of the year to June 11th, showing they move in sync. This means BTC's long-term trends are closely tied to the US stock market. To predict BTC's long-term trends, you need to analyze the US stock market's fundamental cycles.
2. Use technical analysis indicators to make a better judgment ①. Moving Average System a. K-Line Period: 4 hours b. Indicator System: MA (Moving Average) c. Indicator Parameters: 5D MA、60D MA d. Application: It involves the use of dual moving average system to predict the market trend. In the 4-hour K-line chart of BTC, traders use the 5-day moving average as a short-term indicator and the 60-day moving average as a long-term indicator. The Golden Cross occurs when the 5-day moving average moves above the 60-day moving average, indicating a potential bullish trend. Conversely, the Death Cross happens when the 5-day moving average moves below the 60-day moving average, indicating a potential bearish trend.
②. MACD Indicator a. K-Line Period: 1 day b. Indicator System: MACD- The King of Indicators c. Indicator Parameters: 12, 26, 9 d. Application: The MACD indicator, often called the "king of indicators," is highly significant in trading. Commonly known patterns include Bullish Bias (when the fast and slow lines are above the zero line, it indicates a bullish trend), Golden Cross, Death Cross, Bullish Divergence and Bearish Divergence.
③. Other Indicators In addition to using commonly known indicators such as K-line patterns, moving averages, and MACD, traders can also use trend lines to assist in determining the market direction. Dow Theory states that trends have inertia and are not easily reversed once established. Therefore, traders should follow the market's bull and bear cycles: shorting in bear markets and going long in bull markets. It is advisable to avoid opening positions against the prevailing market trend.
④. Gate Futures Big Data
The big data analytics tools available on the Gate platform are highly beneficial for futures trading. By interpreting a variety of indicators such as the fear index, contract positions, long-short ratio, and funding rates, traders can combine these insights with technical analysis methods. This multi-faceted approach helps validate the effectiveness of trading conclusions and enhances the likelihood of successful trades.
3. Summary
To increase profitability in futures trading, traders need to focus on improving their win rate and profit-to-loss ratio. This piece introduces trading techniques around selecting the right trading direction to achieve this goal. Fundamental analysis is gaining importance in the analysis of crypto asset markets and forms the basis of this approach. In terms of technical analysis, Gate's big data tools provide valuable insights that, when combined with traditional indicators, can help validate trading decisions and enhance the win rate.
For practical trading operations, visit the Gate Futures platform. Register for a Gate account now and begin your contract trading journey!
Disclaimer This article is for informational purposes only and does not constitute investment advice. Gate is not responsible for any investment decisions you make. Content related to technical analysis, market assessments, trading skills, and traders' insights should not be considered a basis for investment. Investing carries potential risks and uncertainties. This article offers no guarantees or assurances of returns on any type of investment.
