#TradingTypes101 How to Trade from the Top Loser Board.
Searching 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 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 the breakout 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 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 whether there is a difference in movement between the price and the oscillator. Bullish divergence on certain timeframes can be a sign of an impending reversal.
4 Don't Knife Catch.
When there are no opportunities, do not force it, as prices that have already fallen may continue to decline. Always remember to use stop loss when trying to trade on the top loser board.