Reverse

The viewpoint before #NEIRO was that one should not buy the dip in coins that are experiencing a smooth 4-hour decline (defined by the strength and duration of the rebound), because once a trend is established, it is difficult to reverse (the market's collective force). Apart from a few coins that have V-shaped reversals, most are just continuously declining. So when can we consider buying the dip?
1. First, one must look at the overall market; the rebound of Bitcoin will have a positive impact on certain coins to some extent. Therefore, for short-term traders looking to capitalize on oversold rebounds, there is some premium space (many coins have dropped significantly, but when they do rebound, they can shoot up by over 20%, even though they drop again right after; however, the intensity of the short-term rebound is indeed strong). This is something that experienced individuals with execution skills can do, but for most people, this type of operation is not recommended, as it goes against human nature.
2. The bottom does not create new lows, or if it does create new lows, it quickly recovers. However, the premise is that these two types of movements occur within a previously smooth level of decline, rather than randomly selecting a level. Here, at least the 4-hour level chart should be observed.
3. It is essential to include stop-losses. Buying the dip against the trend involves managing the risk-reward ratio, betting small to gain large, so stop-losses must be included.