Well , they say never buy in top neither when it is on bottom , because if you are not sure it is the bottom it can goes deeper!
2 points are not very stable , very top and very bottom , between those would have less risk .
Well, you may not really see buying the bottom as a risk and I have noticed that any sharp drop sometimes, the market always rise up a little bit even if it wants to continue with the downtrend, but I will consider being careful with this option. I have seen drops before that really ended up dropping the more without coming back up you just have to keep holding and hoping it gets pumped back. Probably for a coin you are buying at the top on a daily chart.
Yeah, I have seen situations like this several times and it takes being cautious to play with markets like this and not being too greedy as well.
Normally, when there is a little scare in the market coupled with a sharp drop there is usually the tendency to see a quick rise which normally end up forming a sharp doji and that should be a good selling point for a market that have the tendency to continue further. Is situations like that; it is good not to expect too much from such trades but something Okay.