Trading is hard, you have to think about multiple scenarios and wait for the probability of a specific scenario to be high... But spotting reversals is not something that hard to do and enables you to buy as close as you can to the bottom.
Using my Steem blog I've taught how to spot big reversals easily, let's now, months later, try to see if my methods worked or not.
The first method was using bear market trendlines, when the price breaks out of bear market trendline the probability of it going much much higher is big, and the probability of it triggering a bull market is just as big...
This is the Trendline that I was using:
This is where you would have bought if you followed my trendline:
See, using the trendline that I told you about you would have bought very early on, very close to the bottom. Of course, with new price action new data can be added, and with this new data we can try to rework the trendline for a riskier trendline but with a better entry.
After the huge drop we could have reworked the trendline to get an even better entry but with higher risk. This would have been the best entry scenario:
I didn't buy that early, I went with the less risky setup but with less reward too.
But of course, using the trendline wasn't the only method I talked about... MAs can also be used to spot reversals!
To be more specific the 50MA on the weekly time-frame. Let's see the entry using this method!
Even though it wasn't the best possible entry that we could get... using the daily 200MA would have been better, it was still a really good scenario!
I used these methods to get the best possible entry into the market... and it seems I wasn't alone! The guy that bought 7000BTC from the market was probably keeping these lines and MAs in his minds too since he bought his whole portfolio right after the riskier trendline breakout.
Now the next issue is... "If and when should I sell?"... which I'll leave for another time...
Question of the day: Did you buy close to the bottom?
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