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 watch for in identifying assets that may reverse 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 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 should be noted.
3 Look for Divergences.
We can also look for bullish divergences by analyzing if there are discrepancies between price movements and the oscillator. Bullish divergence on certain timeframes can be an indication of 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 attempting to trade on the top loser board.
