How to Trade from the Top Loser Board.
Looking for coins that have experienced a significant decline can be a strategy in itself by making purchases and hoping for a price increase. So, how can we utilize the top loser board to find opportunities in trading?
1 Pay Attention to Reversal Patterns.
One characteristic to look out for to identify assets that may be reversing direction is by observing potential reversal patterns. However, try to identify the pattern before a breakout occurs and position yourself when the price has not yet experienced a breakout.
2 Pay Attention to Volume.
When the price is bottoming, there is a chance that volume will peak and prices may reverse. When selling volume peaks, there is a potential price change worth noting.
3 Look for Divergences.
We can also look for bullish divergence by analyzing whether there is a difference in movement between price and the oscillator. Bullish divergence on certain timeframes can indicate a potential reversal.
4 Avoid Knife Catching.
When there are no opportunities, do not force it, as prices that have already fallen may continue to decrease. Always remember to use stop loss when attempting to trade on the top loser board.