Disliked{quote} Why buy at the dip? Ok let's get back the truck, take one step back outside the Forex world and crap like that. Let's go shopping. We all as a consumer wants to buy things a discount price right? Tell me how does a company increase their product price? Answer: They give a discount! Next question: Does the discount last long? Answer: No it doesn't. It could last for a week or a month. Here an example of a trick in a supermarket or any market world when they want to increase the price. Let say before the discount they sell a product at $1.5...Ignored
DislikedAll (I mean ALLLLLLLL) pro traders advise traders to buy/sell at the dip or correction. Why so? I will explain later in the next reply... So first how do you identify a correction or a dip? As this is a complicated subject, let me make it simple for you. First we have to identify a breakout. Let's safe this session later. So now let's presume that we just had a breakout of a trend reversal. {image} In the screenshot above pay attention to those Xs. What do they have in common? Answer: Small frame size! It's like <=50% smaller than the previous frame....Ignored
Ok let's get back the truck up, take one step back outside the Forex world and crap like that.
Let's go shopping.
We all as a consumer wants to buy things a discount price right? Tell me how does a company increase their product price?
Answer: They give a discount!
Next question: Does the discount last long?
Answer: No it doesn't. It could last for a week or a month.
Here an example of a trick in a supermarket or any market world when they want to increase the price.
Let say before the discount they sell a product at $1.5
Discount 30%, so the price becomes $1.05 for a short period of time
or
They'd offer you a promotion to buy the product at $1.95 for 2 similar products so that mean we have a (35% discount for each or $0.97 each).
Then when the discount or promotion is over, the price becomes $1.8 or $1.95 or $2 for a piece depend on the store you buy it from.
Hopefully you get what I mean. The discount is the correction at a short period of time before the price increase
This is not investment/trading advise. Will not hold accountable for loss
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