How to Find the Bottom's? (BTE case in point)Everybody wants to find the bottom but what's a leading indicator that can help do that?
Here's one of the leading indicators I look for. It works for any security at any time frame. I plot the sp (BTE) in this case on the same chart as the technical indicator on balance volume. Google on balance volume if you are not familiar with how it is calculated. Using this TA it was a leading indicator which picked pretty much the exact bottom for BTE in Jan 2016.
Here is what one of the chart's I draw looks like:
https://imageshack.com/i/pn9gytH8p This chart is a 2 day timeframe of BTE from May 2015 up to today. I like to use candlesticks or Heiken ashi bars to chart the sp...this one I use candlesticks. Also included is bolenger bands and some simple moving averages. The orange line is the on balance volume.
What's important is how the OBV line reacts relative to the SP. Look for convergence or divergence of the OBV and the sp. At the points where the sp and obv intersect that can signal a buy or sell. For example look at where the OBV drops quickly then touches the candles just past the middle of the chart. That was Jan 19, 2016. You had convergence of the OBV and the sp which usually means a reversal is imenent. Approaching the bottom there was large volume with little sp movement which usually means accumulation by institutions. The next couple bars diverge quickly away meaning there is high volume on up days but realtively small sp movement. The increase volume confirms the change in sp direction.
I'll post what the chart looked like today to see whether you should have gone short or long.