Buy The Dip Strategy -

A reading below 30 suggests an asset is "oversold" and may be due for a bounce.

When the price hits or drops below the lower band , it often signals an extreme deviation that may revert to the mean. buy the dip strategy

Historical price levels where buyers have stepped in previously act as "floors" for current dips. The Main Risks How to Buy the Dip Like a Pro | AvaTrade Guide A reading below 30 suggests an asset is

"Buying the dip" (BTD) is a market-timing strategy where investors purchase assets after a price decline, betting that the drop is temporary and the overall upward trend will resume. While it sounds simple—"buy low, sell high"—executing it effectively requires distinguishing a healthy "dip" from a "falling knife" (a sustained crash). The Main Risks How to Buy the Dip

Traders often buy when the price touches a major support line, such as the 50-day or 200-day SMA .

Traders wait for a price drop (often 5%–10% or more) and enter a "long" position, aiming to profit when the price rebounds.

Professional traders rarely buy blindly; they use technical indicators to find high-probability entry points: