One of the best ways to identify a bottom in real-time is using US Investing Champ Oliver Kell's @oliverkell_ Price Cycle.
The key pattern you need to know: The Reversal Extension.
Here's what it is, how you can spot it on the charts, with examples:
What is a Reversal Extension?
A Reversal Extension is a large reversal bar in a stock or index that is already extended to the downside below the 10 and 20 EMA.
Look for heavy volume capitulation — showing that buyers start selling and sellers cover shorts.
More characteristics of Reversal Extensions:
→ Look for a defined support level on a higher timeframe.
→ Heavy volume capitulation on the reversal bar is a key ingredient.
→ After the reversal extension, expect volatility, then look for price to tighten
Peak Date: October 28th, 1983
Percent Loss: 14$
Absolute Low: July 24th, 1984
News: Heightened hostilities in the Persian Gulf, Interest Rates, 5 year bull prior without significant pullback, computerized trading
3: August 1987
Peak Date: August 25th, 1987
Percent Loss: 34%
Absolute Low: December 4th, 1987
News: The Plaza Accord & Louvre Accord