What is "buying the dip"? Introducing two news aspects and two technical aspects of bargain hunting.
The profit does not rise:
During the main decline stage of stock price, it is often the case that good news fails to push up the stock price. At this time, the stock price tends to accelerate its decline to find the bottom, which is helpful for the formation of the bottom.
Negative but not negative:
When bad news frequently comes out of the market but the stock price fails to fall below the previous low, it can be considered that the stock price has begun to bottom out.
The MACD crosses upward at a low level, and the daily K-line breaks through the neckline and stands above the 20-day moving average, while the 20-day moving average rises.
Monthly KD golden cross.
Through the above-mentioned "two news aspects, two technical aspects" method, as a tool for judging market trends and conducting transactions, although it may not be possible to buy at the lowest point of the stock price, this is the true sense of bargain hunting.
Investors often try to buy at the lowest point, but this kind of reverse operation can easily fall into the predicament of buying lower and lower.