Ways to identify the bounce ASAP after a significant correction?

[jdn_ldn]

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
 

[1715431999]

1715431999

[1715431999]

1715431999

[1715431999]

1715431999

[tbct_mt2]

1min-candles are for very professional traders or greedy gamblers. 

You need to clear your mind that what is bounce and where bounce can occur.

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.

[GreatArkansas]

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...

[Wind_FURY]

OP, none. Technical analysis is not a perfect “science”. BUT, you can buy the dip, then dollar-cost-average your position to help lower your average buying price before the next surge.

[stomachgrowls]

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
 

Might be connected to forex but they are all just the same because patterns can really be seen when you do make out chartings thats why having some knowledge about TA's
when it comes to reversals or possible trend change then you do have at least the idea.

Here's what it is called:

Double Top
Double Bottom
Head and Shoulders
Inverse Head and Shoulders
Rising Wedge
Falling Wedge

Source

Take note and remember is that Cryptocurrency market can fuck up these TA's that you would make.So always take precaution towards your position.

[Yamifoud]

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.

[jdn_ldn]

Thanks for answers guys. I guess there’s not a whole load of TA to go on right now as we are in price discovery for BTC market. Fibonacci is still a good indicator I suppose as so many people are trading off it, it becomes self-fulfilling etc. I also tend to use the VPVR indicator for identifying key support/resistance as well. Anyone else use this? Very useful imo

[Wind_FURY]

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
 

Might be connected to forex but they are all just the same because patterns can really be seen when you do make out chartings thats why having some knowledge about TA's
when it comes to reversals or possible trend change then you do have at least the idea.

Here's what it is called:

Double Top
Double Bottom
Head and Shoulders
Inverse Head and Shoulders
Rising Wedge
Falling Wedge

Source

Take note and remember is that Cryptocurrency market can fuck up these TA's that you would make.So always take precaution towards your position.

Shower thought. What if the low-volume, easily-manipulated Cryptocurrency Whale-Cumulators read all these TA chart formations, then manipulate the price to do “what it is not supposed to do”, to make us the plebs do “what we are not supposed to do”.

[maxreish]

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.

Use indicators that you are comfortable and used to it. I mean, choose one that you manage to read well and is a useful to your trade.
Traders have a different "best" option when it comes to indicators. While other's are using several indicators, I only used stoch rsi, rsi and MA.

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.

Oh well, that's the problem when you are in profit but still greedy to acquire more. Haven't you manage to cut loss or integrate stop loss so when it triggered then it was the sign that pullback already happen? If you still hold for too long, your entry will just ate up your balance because of the fees.

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?

I don't usually use 1m tf. That's for a pro trader and fast entry and exit is needed there. Been using 5min tf and will confirm in 1hr tf and check out the 12hr tf. I always confirm it with other time frames so I may know whether Im gonna continue the first long entry positions or the short entry one.

[AicecreaME]

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
 

Might be connected to forex but they are all just the same because patterns can really be seen when you do make out chartings thats why having some knowledge about TA's
when it comes to reversals or possible trend change then you do have at least the idea.

Here's what it is called:

Double Top
Double Bottom
Head and Shoulders
Inverse Head and Shoulders
Rising Wedge
Falling Wedge

Source

Take note and remember is that Cryptocurrency market can fuck up these TA's that you would make.So always take precaution towards your position.

Shower thought. What if the low-volume, easily-manipulated Cryptocurrency Whale-Cumulators read all these TA chart formations, then manipulate the price to do “what it is not supposed to do”, to make us the plebs do “what we are not supposed to do”.

Pretty simple, that's why you always trade with a lot of strategies and wait for confirmation before entering a Trade, why is that? well, that's because a manipulated market do have a lot of fake outs. A long two consecutive Bullish candle doesn't mean it'll go up in the next candle, sometimes it goes down because of too much selling pressure, that's why confirmations are important after you did some TA, and chartings.

RSI + DIVERGENCE + EMA + CANDLE STICK PATTERNS always work for me.

[exstasie]

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?

A few ideas from the 4-hour chart:



High volume doji candles (particularly hammer or dragonfly candles) after a significant dump indicate capitulation, which is usually the end of a downtrend.

You can also look for multi-candle reversal patterns. In this case, we had a morning star reversal at the bottom: https://www.investopedia.com/terms/m/morningstar.asp

You can also look for pivot breaks. When price consolidates within a range for many candles then breaks outside the range, a trend usually develops.

[el kaka22]

I would say nobody can guarantee something like that. I know that it will be hard for you to decide on when to sell, but it is really not easy to do by anyone. If there was a method of "this is what you do to know when price will go up" believe me everyone would have used that and make themselves a millionaire, I mean I would just get a 100x long position at the bottom and watch it go up and have 1+ million dollars in like 3 trades correctly guessed like that.

However nobody knows that, we "assume" it which is when the drop stops, if you see price going from 40k to 32k, it doesn't go to 39.9k in a second, for like half a day or so it stays at around 32k, at that point you have to realize it stopped, that could mean it will either go down even more, or it will start going up, at that point I would suggest getting out, best case you get rich, worst case you miss on more profits.

[mrkfdr]

you refer to something like this ?

can be done only by reading real time market behavior , TA analyzing historical data and  is not the best option in the crypto market.




(how do i add image to post ? )

[Wind_FURY]

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
 

Might be connected to forex but they are all just the same because patterns can really be seen when you do make out chartings thats why having some knowledge about TA's
when it comes to reversals or possible trend change then you do have at least the idea.

Here's what it is called:

Double Top
Double Bottom
Head and Shoulders
Inverse Head and Shoulders
Rising Wedge
Falling Wedge

Source

Take note and remember is that Cryptocurrency market can fuck up these TA's that you would make.So always take precaution towards your position.

Shower thought. What if the low-volume, easily-manipulated Cryptocurrency Whale-Cumulators read all these TA chart formations, then manipulate the price to do “what it is not supposed to do”, to make us the plebs do “what we are not supposed to do”.

Pretty simple, that's why you always trade with a lot of strategies and wait for confirmation before entering a Trade, why is that? well, that's because a manipulated market do have a lot of fake outs. A long two consecutive Bullish candle doesn't mean it'll go up in the next candle, sometimes it goes down because of too much selling pressure, that's why confirmations are important after you did some TA, and chartings.

RSI + DIVERGENCE + EMA + CANDLE STICK PATTERNS always work for me.

Can you open another topic, and write a guide of your method? I have tried different methods to “win” profits through day trading/more active trading, but HODLing was the only method that had success for me.

[glockseason00]

fibonaci retracement is what u need ma nigga 

[palle11]

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
 

I determine my decision on times like this with the candlesticks. Candlesticks can help on this too but not with 1m time. If you are lucky to catch it at the close of the day or a longtime that is better. But going off from the market earlier enough when you are confuse with the bigger meat gets you happier anyway.

[Fatunad]

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 will talk about into those common technicals when it comes to pullbacks and possible bounce back and as been said this would really be a little bit hard

yet determining a recovery after such correction is always been a question by many.It all matters on how sellers and buyers do really play into this tug of war game.

So it can really move in random basis neither it would really be having some bounce or the price would just continue to move on what it had started.

[laredo7mm]

Might be connected to forex but they are all just the same because patterns can really be seen when you do make out chartings thats why having some knowledge about TA's
when it comes to reversals or possible trend change then you do have at least the idea.

Here's what it is called:

Double Top
Double Bottom
Head and Shoulders
Inverse Head and Shoulders
Rising Wedge
Falling Wedge

Source

Take note and remember is that Cryptocurrency market can fuck up these TA's that you would make.So always take precaution towards your position.

I do not think this price action and candlesticks pattern work all the time. When the BTC market fluctuates too much market dump is inevitable no matter what the chart patterns are. Tracking the whale movements and on-chain analysis may be us a clear idea of what could happen next. I agree with support and resistance level and these work all the time in crypto.

[mrkfdr]

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
 

To identify a dip using TA is like trying to predict an earthquake counting how many buildings collapsed on 1sq/mile,
you know only after it happened.

[nelson4lov]

@OP, In addition to other users suggestions, I would say you should utilize TA tools available at your disposal. If you're wondering what tools to use, it's not far-fetched. Your drawing tools is fine. You just need to be aware of reversal patterns - like Double Tops & Bottom, Head and shoulders, etc. There are a lot more of these and they get form every now and then so you just have to be aware of them to actually use it. Don't forget your good old support and resistance levels, pivot points, fibonacci retracement levels or even candlesticks patterns.

There's no fool-proof tool to determine when the market will reverse and bounce. You just have to take advantage and use the tools available to you.