Trading a market rebound depends on your style and risk tolerance. Here's a simpler breakdown:
1. Wait for Confirmation
Pros: Safer; confirms the rebound is real.
Cons: May miss the early move.
How: Look for higher lows, a break above resistance, or strong volume.
2. Act Quickly
Pros: Catch the rebound early at better prices.
Cons: Higher risk of a fake rebound.
How: Watch for oversold indicators, price holding key support, or momentum shifts.
Middle Ground
Start small early, then add more as the rebound shows strength. Always set a stop-loss to limit losses.
Choose which approach suits you best.