Tip 1: Find the top bottom

Since the new technical analysis appeared, the players on the Market have tried to use it to find 2 G points to create this "orgasm", which is the top and bottom. The search adventure like Indiana Jones in search of the holy grail has been going on for hundreds of years, but not much seems to have progressed.

Why everyone likes these 2 points? Because these two points are 2 points, when a trader moves out, there will be a Profit immediately. You sell at the top, the price will immediately go down. You buy at the bottom, the price immediately goes up immediately. This means we will take almost nothing at all if we practice to "descend the dragon and the bow" to catch the top of this bottom.

There are many methods used to predict the bottom peak, divided into 3 categories:

1. Predict hard bottom area:

This method helps to determine in advance areas that can create bottom peaks such as Fibonacci Retracement, Fibonacci Expansion, Pivot Point, Murrey Math, Camarilla ... Based on certain data, the "potential" areas to create The bottom will be outlined and the Trader's job is to see which area will have the true bottom.

2. Predict soft bottom area:

This is a method of determining the top of the bottom based on market movements without a fixed level. This sophisticated trader often uses indicators that measure the volatility or overbought/oversold level. For example, in Bollinger Band, if the price surpasses the upper band, it is likely to create a top and return to the BB again. Or like using RSI and surpassing 70, it is possible to create a top. Another tactic that many people use is the use of divergences to predict the top of the bottom, including regular and closed divergences. You can do more research in the classroom section.

3. The hybrid - hybrid method:

This method uses a combination of hard and soft prediction methods to determine the top of the bottom. For example, when the price touched the support Fibo, it passed down to Bollinger Band, and at the same time had a positive divergence on RSI => jumped into the bottom. This method is used by many traders.

However, remember Mr. Viet Currency's words, roughly "The bottom is 2 points that if we are lucky, we can only catch a few times in our life. Trading is not about finding those two points but eating the middle of the bottom. there". In fact, the famous phrase in the Trading world is "Trend is your friend", not "The bottom is your friend". At the top of the bottom, if he had friends, he would only play with the Big Boy Big Bank, because we have big money or can buy internal news, or even make false news to make prices, and brothers and sisters. I, just following the trend is temporary. As mentioned, the new trade is the goal of "surviving", not "claiming to promote the martial arts".