Look, deciding long or short is not rocket science. I just do these 5 quick checks and if 3 of them point same side, that's my bias.
*1. Price vs MA60 / MA200*
Simple - where is price standing?
If price is above MA60 and MA60 is above MA200, trend is up, so I only look for long.
If price is below both, trend is down, only short.
If it's stuck in between, I don't touch it. Sideways will kill your money.
Pro tip: Check this on 4H, not 15m. 15m will fool you.
*2. Is it making higher highs or lower lows?*
Just look left on the chart.
If it's making higher highs and higher lows, buyers are in control - long.
If it's making lower highs and lower lows, sellers are in control - short.
If it tried to go up twice and failed at same level - that's double top, short is coming.
*3. RSI and Volume - the truth detector*
If price is going up but RSI is going down, that pump is fake. Short is near.
If price is dropping but RSI is climbing up, sellers are tired. Long bounce coming.
Same with volume - price up but volume dying? Nobody is buying for real. It will dump.
Price down but volume also down? Nobody is really selling. It will bounce.
*4. Where is price right now?*
Mark your 24h high and low.
If price is sitting near the low and you see those long wicks down, means someone is buying there - long setup.
If price is near the high and you see long wicks up, someone is selling hard there - short setup.
If price is in the middle? Do nothing. Middle is the worst place to enter.
*5. Funding and Open Interest - check this before futures*
In Binance futures info:
Funding above +0.05% = too many people long already, market is crowded, I start looking for short.
Funding below -0.05% = everyone short, good time to look for long.
And OI - if price is going up and OI is also going up, real money is coming in, trend is strong.
If price is going up but OI is going down, people are just closing shorts, pump will fail.
*So how do I finally decide?*
I just make a small table in my head:
MA Trend = ?
Structure = ?
RSI/Volume = ?
Support/Resist = ?
Funding/OI = ?
If 4 out of 5 say long, I only find a long entry.
If 4 out of 5 say short, only short.
If it's 2-2 or 3-2 mixed? I close the app. No trade is also a trade.
And the most important thing - we don't chase.
If I want long, I let price dump to support then I enter.
If I want short, I let price pump to resistance then I enter.
