The 10-day moving average is also known as the 'trading line', highlighting its importance in trading. The main function of the 10-day moving average is to provide support or resistance to the market. The long position strategy based on the 10-day moving average enters a long position based on its support, while the short position strategy enters a short position based on its resistance.
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We observe that after a sharp drop in the contract price, it entered a period of sideways consolidation. In fact, the purpose of sideways consolidation after a sharp drop is to find the moving average barrier, and then begin a new round of decline.
When the price moves sideways near the 10-day moving average (indicated by the circle) and encounters resistance from the 10-day moving average, we can enter a short position using the 10-day moving average as the resistance line. Generally, the duration of sideways movement in a downtrend is shorter than that in an uptrend, and the fluidity of the downtrend is better than that of the uptrend.