Chart Reading, Commentary, Comprehension, Verbalization

Buying the Dip? Isn’t that a shallow thinking?

First, let me apologize.

I deliberately used a strong title to grab attention.
If anyone felt uncomfortable, I’m sorry.

However, in this article, I want to deliver something that hits at the core.
I would appreciate it if you read to the end.

Uptrend.
It has fallen down to a dip on the 1-hour chart.

“It’s a dip. Buy.”

Up to here, it’s correct.
Yet after buying, it continues to fall.

If you have this experience,
I must tell you something harsh.

Those who stop at “buying the dip” have only understood halfway.

A dip is a place to buy.
It is not about the timing of the buy.

Check if it applies to you

□ You buy immediately as soon as the dip arrives
□ You haven’t decided where in the dip to buy
□ You bought in the dip, yet it fell further from there
□ You haven’t looked at how the 5-minute chart moves within the dip

If two or more apply, what’s written in this article is the cause of your losses.

Inside the dip, prices are still falling

The dip on the 1-hour chart is where the price has dropped to.
Within it, the price may still be moving downward.

On the 5-minute chart, the dip appears as a “downtrend.”
A big-time dip on a higher timeframe looks like a single downward move on the next lower timeframe.

Therefore, if you buy the moment you reach the dip,
you would be buying in the middle of the 5-minute downtrend.

Even when the price reaches the dip, do not buy until the 5-minute downtrend ends.

What to pursue is the “end” of the dip

So, where should you buy?

I wait for an N-wave to appear on the 5-minute chart.
Within the dip, stop the decline, rise, then break above the previous high after the pullback.

This is a signal that the 5-minute downtrend has ended and the price is returning to an uptrend.
Enter there, aiming for the third wave of the uptrend (the third wave of the Elliott Wave).

Place a stop loss 10 pips below the low at entry.

Don’t buy in the dip; wait until the dip ends to confirm.
This is taking “buying the dip” one step further.

Buying the moment the dip arrives is like stepping onto a crosswalk before the signal turns from red to blue.
Even if the location is correct, it isn’t the right time to cross yet.

What you can learn from the video

・How the 5-minute chart moves inside the dip on an actual chart
・The shape of the 5-minute N-wave that indicates the dip has ended
・The flow of entering when the price breaks the previous high after the N-wave
・Where to place the stop loss after entry

Who this video is for

・Those who buy in the dip but it falls further from there
・Those who haven’t decided where to buy within the dip
・Those who want to understand dip-buying more deeply

Articles that deepen understanding when read together

From here on, I will explain carefully using actual charts in videos.

▼ Access behind a paywall

Explanation video