I will only dip buy when I see a stock spike with high volume then fall atleast 10% off its highs, hopefully near support. I will watch for the intraday 1 minute volume to increase combined with 1 minute downward price action to gauge the strength of the support level. After that I'll buy on the completion of a green candle following the high volume support test. Then I'll set my risk to the low of the high volume support test. Just like at 10:45: https://gyazo.com/10f029ebb81bd078e5542e8494fcf4f2
@nerenberg really appreciate your feedback. I think it has really helped me from traveling in the wrong direction. Over the summer I prepared myself to try to find a great strategy that works for me and I ended up reading like 10-15 stock market books. I've heard tons of people say HTTM is one of the best DVDs, so I think I'll just get that soon.
You are very welcome! HTMM is a great summary of lots of information contained over multiple DVDs so it is well worth it. I wish you all the best!
I wouldn't say that this is the only way to dip buy well but i would say it is a GREAT idea to just dip buy using these rules, staying disciplined and then once you are comfortable dip buying this way you can expand outwards and you will be able to use what you establish for other dip buying strats
I would only dip buy from a PROVEN support level. Either previously established, or a double bottom as proof. After that, yes, look for volume and price increase, and enter as close to support/risk as possible.
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