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 the pattern before the breakout 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 the volume will peak and the price may reverse. When selling volume peaks, there is a potential price change that is worth noting.
3 Look for Divergences.
We can also look for bullish divergences by analyzing if there is a difference in movement between price and the oscillator. Bullish divergence on certain timeframes can indicate a reversal.
4 Don't Knife Catch.
When there are no opportunities, don't force it, as prices that have already dropped may continue to decline. Always remember to use stop loss when trying to trade on the top loser board.
