Buy the dip (please excuse me omitting one word in the name of this method;) is trading strategy that has been working flawlessly since 7 years. Both cryptocurrency and equity markets brought great profits from this strategy. Even bonds. This strategy is simple enough to implement without complicated framework.
Main question with the strategy is "How deep is the dip?" when price drops. There are some techniques to recognize the right moment:
- waves (third or fifth), when last wave plays out start buying
- start buying steep slope up with tight stop loss (you can't go wrong with this one)
- look at the market strength, especially the biggest entities
When answer appears: "This is potential dip" and odds are positive, start buying.
How to succeed with "Buy the dip" strategy? Control emotions and fight fear of missing out. The biggest returns come from surfing long streaks of higher tops. If you missed most of the uptrend, don't gamble and wait for the next dip. Good luck!