A reading below 30 suggests an asset is "oversold" and may be due for a bounce.
When the price hits or drops below the lower band , it often signals an extreme deviation that may revert to the mean. buy the dip strategy
"Buying the dip" (BTD) is a market-timing strategy where investors purchase assets after a price decline, betting that the drop is temporary and the overall upward trend will resume. While it sounds simple—"buy low, sell high"—executing it effectively requires distinguishing a healthy "dip" from a "falling knife" (a sustained crash). A reading below 30 suggests an asset is
Historical price levels where buyers have stepped in previously act as "floors" for current dips. The Main Risks How to Buy the Dip Like a Pro | AvaTrade Guide While it sounds simple—"buy low, sell high"—executing it
Traders often buy when the price touches a major support line, such as the 50-day or 200-day SMA .
© 2026 KambiStory
