Choosing cryptocurrencies for futures trading on Binance depends on many factors, including liquidity, volatility, trend, fundamental background, and technical indicators. Here is a step-by-step methodology that will help select the best instruments for trading:
1. Asset filtering
Before analyzing specific coins, you need to narrow down the list by filtering out uninteresting pairs.
• Liquidity: Choose coins with high trading volume (from $100M per day). This reduces the likelihood of slippage.
How to view? → In the Futures Market section on Binance, you can sort pairs by volume.
• Volatility: For medium-term trading, coins with average volatility (1–5% per day) are suitable.
How to view? → TradingView → Sort by ATR (Average True Range) or percentage change.
• Fundamental background: Exclude assets with negative news (scam projects, hacker attacks, etc.).
2. Determining the trend
After selecting liquid coins, evaluate their global trend.
• EMA 200 (on 4H and 1D):
• Price above → bullish trend, consider longs.
• Price below → bearish trend, consider shorts.
• Bollinger Bands (1H, 4H):
• If the price is at the lower boundary + oversold → one can look for longs.
• If at the upper boundary + overbought → one can look for shorts.
• RSI (14):
• RSI above 70 → overbought (a pullback is possible).
• RSI below 30 → oversold (a bounce is possible).
3. Determining support and resistance levels
Since you are trading from the range boundaries, it is important to identify key levels:
• Mirror levels (where the price often bounced).
• Local highs and lows (sharp breakouts can occur due to them).
• Fibonacci (if in trend, look for corrections to levels 0.382, 0.5, 0.618).
4. Checking for abnormal movements
• Sudden pumps/dumps without news → sign of possible manipulation (better to skip).
• Sharp increase in volume → signal of the beginning of a strong movement.
5. Choosing an entry strategy
Considering your trading from the range boundaries, the strategy may look like this:
• If the price is at support + there is confirmation (Bollinger, RSI, volumes) → Long.
• If the price is at resistance + there is confirmation → Short.
• Set a stop-loss behind the level (with a margin) to avoid false breakouts.
6. Summary: final selection
After all the analysis, select 3–5 coins with the best entry points and monitor them.
