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If you want to "catch a falling knife," then maybe you can look at indicators that are based on fundamentals than simply on charts. One indicator that comes into mind is the commitment of traders report... Through the commitment of traders report you can find out those times when there the number of bulls or bears is grossly tilted to one side. If there are no more buyers in the market, who will take the opposite side of sell trades? That's right - nobody. By using the commitment of traders report, you can spot the times when market sentiment is at an extreme and then match it up with price action. For example, if the net short positions on eur futures on the commitment of traders report is at its highest point in say, 20 years, and match it up with dojis/hammers on the weekly/monthly chart, then the odds of the eurusd reversing will be far greater than simply using major support levels
