Buying The Dip After The Bounce
When the price rises sharply in a short period, it can present another buying opportunity when it dips.
I noticed something interesting happens when a price rises sharply.
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There are always buyers and sellers in the market.
The price rises quickly when there are many buyers trying to get in.
This is what happened yesterday after the tariffs were put on hold.
As the price gets higher, the sellers start to pay attention.
They see an opportunity to sell.
They may be selling to lock in gains or they have been waiting to get out and now they see an opportunity.
I have noticed this pattern many times.
What tends to happen is there a big price moved up in a day or over a few days.
The candle bar chart looks like a tall green candle.
Then I see the price come down a bit.
It will come down for a few days or a little while.
After a bit it starts going back up slowly.
Then after a little while longer, the price gets higher than the last move.
Today we saw the price fall after yesterday’s big move.
Keep an eye out.
This may be an opportunity to buy after yesterday’s big move.
Watch for the price to stabilize and start going back up.
As for me, I’m going to buy more of the ETFs that I bought on Tuesday based on my last post.
Read the my last post about buying the bounce after the dip.
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Disclaimer: The author of this post is not a financial advisor. The information provided herein is not financial advice and should not be construed as such. This content is intended solely for educational purposes. The author will not be held liable if you decide to used this material as a basis for any financial decision-making. Investing involves risk, including the potential loss of your invested capital. Only invest what you are willing and able to lose.