In contract trading, there are countless technical indicators, but how many are truly usable? The MACD Golden Cross might be the most underrated one. This time, I’m sharing 5 rules for the Golden Cross, which are not some mystical secrets but based on practical market review and experience.

The trade at 7:21 AM the day before yesterday is very representative. At that time, a 150x long position was opened at 90421.6, and the price directly surged to 91224.7 to close the position, yielding a 132% profit. It looks simple and aggressive, but behind it is actually strict adherence to the Golden Cross signal, with no luck involved.

So why do some people make money with MACD while others always miss out? The key lies in these 5 ironclad rules.

**Rule 1: The 1-hour timeframe is the main reference**

When monitoring, prioritize the 1-hour MACD Golden Cross. If the Golden Cross appears above the zero line, the probability of a successful entry exceeds 70%, and the signal quality is the best. But if it occurs below the zero line, don’t rush to follow. At this point, risks are hidden in the details. A lower-level Golden Cross requires confirmation before acting; otherwise, you risk falling for false signals.

**Rule 2: Volume must cooperate**

Just looking at the Golden Cross pattern isn’t enough. When the Golden Cross appears, trading volume should also increase, by at least 30%. This indicates strong market participation, increasing the likelihood of a continued trend. If the Golden Cross occurs but volume doesn’t follow, the credibility of the signal is significantly reduced.

**Rule 3: Know your stop-loss levels**

Plan your exit before entering. The simplest method is to use the low point before the Golden Cross as your stop-loss anchor. For example, in this case, the lowest point before the Golden Cross was around 89242. Once the price breaks below this level, exit immediately and don’t expect a rebound. In contract trading, avoiding hope and sticking to your stop-loss is crucial.

**Rule 4: Confluence zones can be added to positions**

When the Golden Cross coincides with a technical support level, it’s an opportunity to add to your position. For example, support from MA20 or MA60 moving averages, if combined with a Golden Cross, can be considered for small position increases, with risk more controllable. But the key is to have a strict stop-loss plan in place.

**Rule 5: Be alert to reducing positions**

When the MACD histogram starts shrinking, it’s time to reduce your position. Don’t wait for the death cross to appear before exiting, as profits may have already been eroded significantly. Early detection of weakening momentum and taking profits promptly is the most important step to protect gains.

In essence, it’s a complete set of entry and exit logic. Those who master this method can seize opportunities when the market moves; those who don’t will only watch opportunities slip away. With the same candlestick patterns and price fluctuations, why do some traders make huge profits while others get slapped in the face? It’s the seemingly simple but easily overlooked details that make the difference.

Many traders’ problems aren’t bad luck but lack of solid skills. Relying on luck to gamble versus trading based on concrete signals can lead to a huge long-term gap.

Have you missed trades because of unclear signal judgment standards? Share your experience in the comments.