Apologies if this comes up a lot (as I'm sure it does) but when / how often do you feel is best to buy the dip?
I know its not an exact science but I've heard a few different preferences on this such as:
- When the price decreases x% on the weekly/monthly candle
- When the price moves below the weekly/monthly negative average
- Only a couple of times a year after a major correction
- Just look at the chart and go on your experience / gut
After a major correction (weekly or monthly time frame)
and a subsequent accumulation bottom. Examples would be September 2015 and March/April 2019.
Dips below the 200-week MA are also historically excellent knife catching opportunities. Knife catching always carries a lot of risk though.
The current long term structure is not as clear as the examples mentioned above. Strong upside momentum is present but there is no accumulation bottom, and we are still officially stuck in a longer term bear market since June 2019. That's why I'm fairly neutral about the mid-term outlook. I'm not sure which way this range is going to break.