It works best in established bull markets where the underlying fundamentals of the asset remain strong despite the price drop. Key Tools for Identifying a "Dip"
Traders often buy when the price touches a major support line, such as the 50-day or 200-day SMA . buy the dip strategy
Traders wait for a price drop (often 5%–10% or more) and enter a "long" position, aiming to profit when the price rebounds. It works best in established bull markets where
A reading below 30 suggests an asset is "oversold" and may be due for a bounce. buy the dip strategy