Traders wait for a price drop (often 5%–10% or more) and enter a "long" position, aiming to profit when the price rebounds.
A reading below 30 suggests an asset is "oversold" and may be due for a bounce. buy the dip strategy
Professional traders rarely buy blindly; they use technical indicators to find high-probability entry points: Traders wait for a price drop (often 5%–10%
The core philosophy is : the belief that prices will eventually return to their long-term average or trendline after a short-term pullback caused by panic selling, profit-taking, or minor news. buy the dip strategy
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"