How to Trade from the Top Loser Board.
Looking for coins that have experienced a significant decline 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 that can be observed to identify assets that may reverse direction is to pay attention to potential reversal patterns. However, try to identify the pattern before the breakout and position yourself when the price has not yet experienced a breakout.
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 be a sign of a reversal.
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.
