Ok I hope I can do justice to explaining this and post something you can understand. (sometimes I have trouble putting my systems into words).
So the question is how did I call that the selling was becoming exhausted and what indicators were primary around that.
When we see a chart falling we immediately look for strong support levels and that .37 level had seen some very strong pivots and the beginning of a big breakout to .66 cents therefore that support level would be regarded as quite significant. Keep in mind that two things can happen at that level, one the downtrend is so strong that the SP falls through it and if so, it falls a long way or two, the SP bounces off it. Now with 2 candles printing below bollies at the same level right on support, it was a high probability that support was going to hold and since then you've seen higher lows and the SP closing right on the 8ema.
You've also seen a change in direction in MACD and you may see a positive cross next week if current momentum continues.
The other piece of valid evidence I had to support my call was the hourly chart and you can see on the 6th that solid buying volume flooded in and candles began printing above the 8ema also indicating that sellers were exhausted. We've seen higher lows ever since.
Growler, we use the same system to identify when the highs are in and buyers become exhausted. Here's a tip, once you spend a lot of time getting used to this, check out how accurate the change in direction MACD has been (check the yellow line and how closely it gets the peaks and troughs). If you just entered and exited based off that you would have done very nicely over the past few months and there's no reason why it won't continue.
I hope this has made sense, this is just a few of the main indicators we use and must be used in combination. What I can't tell you is how far this bounce off support will go but guess what, neither can anyone else as we don't know what the markets will throw at us at any given time therefore we just monitor the rises, the falls and the sideways until the indicators display something different and we act accordingly.
By the way, while I'm here, here's the weekly which has a lot of work to do to reverse. You can see that for the first time since last October MACD is negative.
Cheers
@Growler74
(20min delay)