When the market hits a bottom, it0s time to start the bargain hunting. The upside from a bottomed market is huge, and then profits can be further compounded into a short position. Bottoms can be hard to spot, but with some experience, bottom hunting can be profitable and extremely rewarding. Even with the best uptrend, you0re unlikely to time a bottom perfectly. Sometimes you0ll see a bottom, enter a trade only for the security to downtrend briefly and retest a bottom. Bottoming securities are unlikely to be perfect, so you0ll have to have plenty of patience. Profitable traders do very well in market bottoms, as they provide some of the best risk to reward ratios.
What to Look For
First, you need to look for a measured downtrend. A downtrend that follows some guide for its dropping price will be more likely to respond to an uptrend or support lines that make up a bottom. When Stocks hit the bottom, they rarely do so due to unforeseen events. This is where long term trendlines and indicators really pay off.
Professional traders usually start calling a bottom after a sideways trend, when the stock remains […]

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