Ways to identify the bounce ASAP after a significant correction?
Ways to identify the bounce ASAP after a significant correction?
Hi,
I’m just wondering what are the best indicators / candlestick patterns / charting TA to look for when a support bounce occurs after a significant dip.
I was in short positions on both Sunday and Monday during the big BTC correction and obviously there were points where they were significantly in profit. However, I held on too long and closed after the bounce. I still took profit but feel I could’ve “taken the meat of the trade” a lot better.
What do you guys look for? I guessing this is perhaps best done using the 1m (or similar short timeframe) and looking for a big green bottom wick with large incoming volume or something?
Ain’t that easy to predict when to bounce back. You can make it in general but you can have some ideas when if you are focusing on one coin. Many traders never trade for a lot of coins but they usually choose one at a time as it was easy for them to study its market movement and could predict the right position to buy and sell but not 100% accurate. They master to read and understand the candlestick, a basis for them what actions they will have to take.
Bounces are related to supports or very strong supports. When price dips to a support or very strong support level, it will bounce back. As I said, it is level, not an exact price and it is depended on how the liquidation on market happens. If liquidations are serious, price can quickly dip much below the support level but it will also bounce back very fastly.
If you want to hunt for such bounces with liquidations, do it with your Spot tradings, not Margin/ Leverage tradings.