How to Trade from the Top Loser Board.
Searching for coins that have experienced significant declines can be a strategy in itself by making purchases and hoping for price increases. So, how can you utilize the top loser board to find opportunities in trading?
1 Pay Attention to Reversal Patterns.
One characteristic to observe in order to identify assets that may reverse direction is to look for potential reversal patterns. However, try to identify patterns before the breakout 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 the price may reverse. When selling volume peaks, there is potential for price changes that deserve attention.
3 Look for Divergences.
We can also look for bullish divergences by analyzing whether there is a difference in movement between price and oscillator. A bullish divergence on a certain timeframe can be an indicator of a reversal.
4 Don't Knife Catch.
When there are no opportunities, do not force it, because prices that have already fallen may continue to decline. Always remember to use stop loss when attempting to trade on the top loser board.
