Buy — The Dip Strategy

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

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

"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). When the price hits or drops below the

Traders often buy when the price touches a major support line, such as the 50-day or 200-day SMA . While it sounds simple—"buy low, sell high"—executing it

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