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 opportunities in trading?
1 Pay Attention to Reversal Patterns.
One characteristic to observe in order to identify assets that may reverse direction is by looking for potential reversal patterns. However, try to identify the pattern before a breakout occurs and position yourself when the price has not yet broken out.
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 are worth noting.
3 Look for Divergences.
We can also look for bullish divergence by analyzing whether there is a difference in movement between the price and the oscillator. Bullish divergence on certain timeframes can indicate a reversal.
4 Don't Knife Catch.
When there are no opportunities, do not force it, as prices that have already declined may continue to drop. Always remember to use stop loss when trying to trade on the top loser board.
