To identify bottoms using platform indicators
1. Relative Strength Index (RSI):
A bottom is determined when the RSI drops below 30, indicating an oversold condition and a possible price rebound.
2. Bollinger Bands:
A bottom often occurs when the price approaches or breaks the lower limit (DN), usually accompanied by an upward bounce.
3. Moving Averages (MA):
If the price touches or approaches a long-term moving average (such as MA10 or MA20), this indicates strong support and a possible bottom.
4. MACD:
A positive crossover between the MACD line and the signal line, especially at low levels, indicates a possible bottom.
5. Volume:
If volume increases significantly as the price falls to a support level, this reinforces the possibility of a bottom.
6. Williams Indicator (Wm %R):
When the indicator drops below -80, it indicates an oversold condition and a potential bottom.
Conclusion:
Check for indicators to converge at the same point:
RSI below 30
Price at the lower Bollinger Band
High volume at strong support.
Use these signals together to accurately identify the bottom.