DislikedIs there a strong discretionary component to what is considered a dip? It seems that there must be otherwise there is a real possibility of missing an upward trend. So either case below would be considered a dip dependent on circumstance and your own view of the market?
For example the price for the EUR/USD has recently dropped from 1.6000 to 1.5400. After the initial price fall 23-25Apr08 to 1.56000 it then consolidated for a few days and after a "high" of ~1.5650 the price "dipped" back to 1.5600? That would then be the buy on dip opportunity? [Of course it continued to fall to around 1.5400 but then hindsight is a wonderful thing! ]
Or is dip interpreted more mechanically using "peaks" and "troughs" and support lines [and the 50% line] view of price movement? So the support line was at ~1.5400 based on previous price action 24Mar08 and so the "dip" was actually the entire move from 1.6000 to 1.5400?Ignored
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