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"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).
Traders wait for a price drop (often 5%–10% or more) and enter a "long" position, aiming to profit when the price rebounds. buy the dip strategy
Traders often buy when the price touches a major support line, such as the 50-day or 200-day SMA . "Buying the dip" (BTD) is a market-timing strategy
A reading below 30 suggests an asset is "oversold" and may be due for a bounce. Traders often buy when the price touches a
Professional traders rarely buy blindly; they use technical indicators to find high-probability entry points: