How to Catch the Rebound After a Sharp Short-Term Drop? I'll Teach You Three Tricks to Keep an Eye on the Market!
Let's get straight to the point! When the coin price is being pressed down by short-term moving averages like the 5-day and 10-day, keep your eyes wide open! If one day it suddenly plummets and closes with a long lower shadow (that's the long tail below the candlestick), it's highly likely that the bears are fiercely selling, but it might also be the last wave! At this point, don't rush to catch the bottom; we need to wait for confirmation signals!
Now comes the key part: the coin price must stand above the moving averages! For example, from EMA5 to EMA20, any period is fine, the key is to break through! After the breakout, we need to look for a retest; if the price doesn't fall below the moving average during the retest and is instead supported by it, that's when it's a real opportunity to go long! Once these three steps are completed, that's a textbook-level trend reversal signal, and I call this the "Three-Step Confirmation Method"!
The moving average periods are not important; you can use 5-day, 10-day, or 20-day, what's important is the rhythm—sell-off → long lower shadow probing the bottom → breakout retest without breaking! This is the essence of short-term rebound trading.
Prepare in advance for potential coins, click on the avatar to follow, keep up with my rhythm, and make a fortune in this bull market!