🧰 STEP BY STEP: How to Buy Dips Like a Professional
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1. 🔎 Identify the Major Trend
Never buy a dip in a prolonged downtrend.
Only buy dips in healthy uptrends (daily or weekly).
✅ Use:
Moving averages (EMA 20 / EMA 50 / EMA 200).
Structure of higher highs and higher lows.
Volume analysis.
📌 Example: If the price is above the EMA 200 and makes a pullback towards the EMA 50, it could be a good opportunity.
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2. 🧱 Define Demand or Support Zones
Look for areas where the price has bounced before:
Horizontal supports.
Previous consolidation zones.
Fibs (50% - 61.8% retracement levels).
✅ Pro tip: Draw your levels on a higher timeframe (4H / Daily) and wait for the price reaction upon reaching there.
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3. 🕯️ Wait for Confirmation (DO NOT buy directly)
A dip is not bought "blindly". Wait for the price to show you that it wants to bounce.
Common formations:
Reversal candles (hammer, bullish engulfing).
Bullish divergences in RSI or MACD.
Change of structure on a lower timeframe (1H / 15min).
⛔️ Never try to predict the bottom. React, don’t guess.
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4. 📏 Precise Risk Management
A pro does not enter without knowing how much they are willing to lose.
Rules:
Risk per trade: 1-2% of total capital.
Stop loss below support or broken structure.
Position size based on the stop.
📌 Use the formula:
Position size = Capital x % risk / size of the stop
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5. 🧠 Steel Psychology
Do not chase the price if it has moved away from you.
Do not "average down" without a plan.
Accept stops with professionalism.
> Trading is not about being right; it’s about making money when you are right and losing little when you are not.
