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?
Thanks
This is kinda difficult.
But I can say that some basic trading tools/indicators or strategy can do this, but as we all know we really can’t do 100%.
Fibonacci retracement and supports & resistance will do for me. The supports and resistance is important since these are significant level that it may hold or be broken, and this method is one of the popular for sure and basic that everyone MUST to learn.
Also using Fibonacci retracement levels also useful for this, just plot swing low and swing high and some levels will be provided that may pullback or bounce.
Just my 2 cents…