Knife catching is an attempt to buy an asset during a rapid decline. Opening a long position in such conditions is often based on hope, not strategy.
Subscribe @Sasha why NOT
This usually happens against the backdrop of bad news or unexpected events, such as a platform hack or a change in development strategy. Often, traders, seeing a small pullback after a fall, are convinced that they were right, although this is an illusion.
Catching knives is pointless. It's more like gambling, where you can lose significant amounts of money by giving in to emotions.
Do you think it is worth working on such a strategy?
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