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How Do You Know When a Stock Hit a Bottom?

Many beginners try to find the bottom of the stock or when to get in and when to get out of a stock. You are always trying to find the lowest point however it is very difficult to find or catch the lowest point of a stock.

How does a stock move lower?
If a stock is moving lower, it is moving from its high and it starts trending lower and lower, usually in a wave-type or a stair-step pattern. As the stock is making these lower lows and lower highs, this is the trend of the pattern.

Because stocks donโ€™t go straight down and neither do they go straight up. Once this pattern reverses meaning the stock starts making higher highs and higher lows, you will see the trend start pushing upward and that is kind of where you start seeing that the stock has made its bottom. When you see the same type of time frame changing the direction of the stock and changing its pattern.

#stockbottom #tradingbottom #tradingstocks #stockhitbottom #stockmarket

Posted at: https://tradersfly.com/blog/when-a-stock-hit-a-bottom/

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