$ETH

Understanding Buy a Bounce

Bounce buy trading strategies are often identified based on technical analysis patterns. There are numerous patterns that can be used with various trading strategies and that can also be implemented to gain profits from a bounce buy strategy. When a security falls to a support level, a trader may buy a position anticipating a short-term bounce.

Bounce buy trading opportunities are identified when a security reaches its support trend line. Securities generally trade within a specific price channel range for an extended period, fluctuating their price within the resistance and support ranges.