How I Find Oversold Altcoins Likely to Bounce Hard

Now that the market has decided its time to mean revert it's time to find some altcoins that are likely to bounce hard.

I know a lot of cynics troll these boards either because they are down bad in the market or they just don't believe in short-term trading. But my process is pretty simple and if you just take a fresh approach you will see that it is possible to extract profits consistently in the market on a regular basis.

1. Screen altcoins using coinrotator.app advanced settings. Put the Trend streak on 20 + so you can find coins that have been trending down for at least a month or more. Depending on your risk profile you could even sort by lower market cap (0-100m). If we bounce at all the smaller caps usually bounce the hardest. But as you can see in the current market today, even the big caps are up nicely.

https://preview.redd.it/3x5js3kvkvu81.png?503&format=png&auto=webp&s=05af8961b481f101a63ecec6b4371fe72dae80aa

1. Depending on your broker, head to ftxpremiums.com or Binancepremiums.com and see if the futures funding have been excessively negative for a few days recently. For a less granular view, you can try Coinglass or Coinanalyze. Both are reliable sources for futures funding data.

2. Then it's important to wait for the market to level off (don't buy into euphoric spikes). Set an intraday alert for the price to close above the Supertrend. This can be done via Tradingview alerts. I like to use 45 minute charts to establish the next UP trend. Some people prefer the 5 minute, some prefer the 4 hour, it's really up to you. The standard Supertrend works fine for setting alerts. My settings are (5 and 1.5) vs the default (10 and 3) that most people use.

https://preview.redd.it/4pv249golvu81.png?856&format=png&auto=webp&s=2d6d67c99484bf86b9a86fdc77628d5577612c10

1. If the list is too large to monitor (and on days like today it will be), one further refinement is to check for upcoming news events. For example, now there is a conference in Amsterdam for crypto devs. A lot of positive news has been released since the start. Coins like DUSK and, yes, even MATIC are announcing positive events which will put upside pressure on their coins.

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This is my oversold setup. I will keep this watchlist for a few days unless BTC crashes, I will be waiting for buy alerts and then consider the overall sentiment of the market (no FED drama, I am a buyer).

Curious to hear others' feedback about how they buy into an uncertain market these days.

edit: I made a longer post on this topic if you wanted to read more on my approach to buying oversold altcoins. https://coinrotator.medium.com/find-the-most-oversold-altcoins-systematically-e5efac3caab6