After a sharp rise, the price of this contract has entered a consolidation phase. When the price consolidates around the 10-day moving average (indicated by the circle), it receives support from the 10-day moving average, allowing investors to enter long positions based on this support. The price's upward momentum, which does not break the 10-day moving average, is very strong. The 10-day moving average is very suitable for medium to short-term trading and is highly effective and reliable in situations of clear upward or downward trends, while its effectiveness is relatively weaker in sideways movements. In an upward trend, when the price pulls back to near the 10-day moving average, trading volume should noticeably decrease, and when the price rises again, trading volume should increase, thereby increasing the potential for further upward movement.
