The Only Tip You Need to Know to Buy the Dip Early
The principles governing buying the dip are the same across any market, including the cryptocurrency market. In layman’s terms, buying the dip is a strategy that involves purchasing a crypto asset after the price has dropped.
How to buy the Dip Early
If you don’t want to jump in front of a “falling knife” and want a safer and more conservative approach to buying crypto at discount prices, the best way is to buy on the first pullback. This implies that we give the market time to establish a bottom first and enter during the first pullback.
Entering the market using this approach allows you to be in a move right from the very start of a new trend.
Let’s explore this trading tip and what signals you need to look for before pulling the trigger.
Signal #1 Break in Market Structure
The first concept you need to grasp is that the first sign of a break in the price structure or a change in the market momentum is when the price makes a higher low. This is a signal of a potential bottoming pattern that is forming.
The higher low is a sign of strength that shows that the bearish momentum is fading.
Signal #2 AB=CD Pattern
The most important aspect to know is that often trends are reversed by 3-wave countertrend price movements. So, at the start of every new trend, you’ll see this price structure. This 3 waves pattern is also associated with the AB=CD pattern.
In this regard, the easiest way to trade the first retracement is to spot or better anticipate the AB=CD pattern, where the BC leg is the actual pullback.
This pattern is confirmed once the price breaks beyond the high of wave B, which is also the point of entry for buying the dip.
Another option to buy the dip
Using the Ascending Channels to buy the dip
The idea behind ascending channeling is that when the Crypto market is going up, you should buy Crypto in the middle of the ascending channel.
This strategy has worked very well in the past and it will continue to work in the future. So if you are interested in buying cryptocurrencies, make sure to follow these tips.
Follow the trend – If you see a asset that is trending upwards, it's important to follow the trend. This means buying assets when they're trading at their peak prices and selling them when they're trading at their lowest prices.
Identify key support and resistance levels – Ascending channels often form near key support or resistance levels. This means that it's important to closely monitor these levels in order to determine when to buy or sell.
Stay disciplined – It's important not to get carried away with your investment decisions. Remember, ascending channels are a long-term strategy, so you need to stay invested for the long term in order to make money.
