Anticipating a Bounce from Oversold Levels

2 min read July 20, 2021
Richard Fetyko

Anticipating a Bounce from Oversold Levels

Anticipating a Bounce from Oversold Levels

Crypto markets have been getting hammered.  Uncertainty around Grayscale share unlock has created an overhang for BTC.
While altcoins remain in a downtrend, we could be reaching very (or extreme) oversold levels, due for a bounce.
Watch this video to learn on how to identify possible Swing trades using simple technical indicators and concepts such as RSI and Support / Resistance.
Coins reviewed in the video include Litecoin (LTC), VeChain (VET), THETA (THETA), Polygon (MATIC) and Axie Infinity (AXS).
 
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More recent blog posts:

Is this the bottom or just bear market rally?
How to trade a downtrend with Short Selling
Week 25 – winner and losers
Swing Trading
Crypto bear market? How to trade it?

 

Risk management – Stop Loss and trade size.  In all of these setups, traders should use Stop Loss orders to manage their downside risk, in case the trade goes against us, as it often will.  is about probabilities and even though these setups have a high win rate, one must be prepared to minimize losses on the trades that go bust.  If Stop Loss order types are not supported by they exchange, at least set up a price alert (see video).  Also, trade size should be such that you never risk losing more than 2% of your total equity.  Keeping the trade size small allows the trader to setup a wider Stop Loss, which gives the trade more room and time to complete with success.  Setting Stop Loss levels too tight can often result in getting knocked out of a trade prematurely.

Disclaimer: This content is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice.  There are risks associated with investing in cryptocurrencies. Loss of principal is possible.