The question is when the rally will commence.
It is well-known that just because the price has slumped to a large degree does not categorically mean that it is a good opportunity to buy.
Many people are, nonetheless, easily seen exhorting to take a long position, despite the price plunging several times.
In my opinion, the most possible potential reversal zone can come down to two ones, indicated on a 4 hour chart of Huobi.
The price, thinkably, will rebounce off 'B' zone, though it may break below the zone..
One of merits and concurrent demerits to , I think, is that its price sprials and collapses in too short a time.
It is conceivable that it pierces B zone to a great extent, but bounces off to much same extent right after.
A similar example is when the lowest was made - 275 dollars. It had gone so far as 270's, but that was proven untenable short after.
Considering this, I am going to set a limit long order at 'B' zone with half assent of mine, in the hope that the price grazes that line. But it would be wise, I believe, to place a buy order at A zone, in case that the price bonces off there but does not touch a B zone..
I had shorted at 2360 and closed it at 2200 and switched my position to long there. But the price missed my expectation and slumped again. So I have cut my loss at 2140, am watching for the price to enter either or both of the zones.
I will set a limit order half at the bottom of a A zone and half at a little above B zone. It is important to make sure the deal is fuliflled.
Update : It appears that A zone is more likely to become a bounce zone. That is shown when you use Bolinger Bands. Band's width is reducing, while the price is reaching a bottom line. I am going to buy there if that is the case.
Thank you for reading. Please leave a comment, if you are willing to, which is helpful for an amateur trader like me.
My orders have not fulfilled by narrow margins.
But it might be reckless to make any deal here. I advise you not take a position here.
As you said, the trend reversal has been confirmed, but there should be a little consoildation. It would be wise to buy there.
Currently, I am not holding any position, only with cash.