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 a price increase. So, how can we utilize the top loser board to find trading opportunities?
1 Pay Attention to Reversal Patterns.
One characteristic to look for in identifying assets that may reverse direction is by observing potential reversal patterns. However, try to identify patterns before a breakout occurs and position yourself when the price has not yet broken out.
2 Pay Attention to Volume.
When prices are 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 reversal is coming.
4 Don't Knife Catch.
When there are no opportunities, don't force it, as prices that have already fallen may continue to decline. Always remember to use stop loss when attempting to trade on the top loser board.