0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.04% 🇬🇧GBP: -0.26% 🇳🇿NZD: -0.28% 🇪🇺EUR: -0.38% 🇨🇦CAD: -0.42% 🇦🇺AUD: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/yEuaSlzK8I
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: -0.25% Germany 30: -0.36% FTSE 100: -0.36% Wall Street: -0.44% US 500: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/eIQkhwpUNE
  • RT @JPan_IG: #Tencent down 10% shortly after President Donald Trump move to ban #WeChat in US. Prices caught by support at $500 so far. Ten…
  • The #Euro may pay the price for the EU’s stance on its digital sovereignty while the US Dollar eyes closely-scrutinized US fiscal stimulus talks. Get your $EURUSD market update from @ZabelinDimitri here:https://t.co/Ga3DdHod7j https://t.co/ZMnhpOkeQr
  • The S&P 500 is a stumble from a record high and the Dollar is leaning hard on a breakdown. I prefer a $GBPUSD over a AUDUSD on the volatility. Talk about NFPs and market bias in my video for today: https://www.dailyfx.com/forex/video/daily_news_report/2020/08/07/GBPUSD-and-USDCAD-Breakout-Candidates-SP-500-Complacency-Awaits-NFPs-.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/1Q370CIW2m
  • 🇨🇳 Balance of Trade (JUL) Actual: $62.33B Expected: $42B Previous: $46.42B https://www.dailyfx.com/economic-calendar#2020-08-07
  • Chinese exports for July jump 10.4% year-on-year, smashing expectations of a 0.9% climb - BBG $USDCNH
  • Heads Up:🇨🇳 Balance of Trade (JUL) due at 03:00 GMT (15min) Expected: $42B Previous: $46.42B https://www.dailyfx.com/economic-calendar#2020-08-07
  • The #RBI unexpectedly held rates unchanged yesterday What is the road ahead for $USDINR and the #Nifty 50 ahead of key Indian data next week? #Rupee https://www.dailyfx.com/forex/fundamental/article/special_report/2020/08/07/Indian-Rupee-USDINR-Look-Past-RBI-Rate-Hold-Nifty-50-Uptrend-Holds.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/KoaBZvChfd
  • Copper prices seem to have stalled just shy of key chart resistance as geopolitical tensions weigh on the global-growth proxy. Get your copper market update from @ddubrovskyFX here:https://t.co/qseySE5dWP https://t.co/T1pquI7oNZ
Buy the Dip and Sell the Rally

Buy the Dip and Sell the Rally

2011-10-20 19:12:00
Richard Krivo, Trading Instructor
Share:

When identifying a pair that is in an uptrend, the concept of Buy the Dip can be put to good use. The idea is that as the pair continues to move higher, invariably there will be pullbacks/retracements/dips that occur. When those take place, the trader is presented with an opportunity to enter the trade (buy on a dip) in the direction of the trend at a more favorable price.

Take a look at the chart below for a visual on this concept…

Buy_the_Dip_Sell_the_Rally_body_buy_dips_10_20.png, Buy the Dip and Sell the Rally

To time our entry into the trade, an oscillator can be used so we can enter when bearish (downside) momentum shifts to bullish (upside) momentum. In this case we chose Slow Stochastics. (Note the timing of the entry with the Slow Stochastics crossover to the upside in the circles.) When buying on dips a stop can be placed below the lowest candle or wick that occurred during the retracement or dip.

In a downtrend, the process would be reversed. Take a look at the chart below…

Buy_the_Dip_Sell_the_Rally_body_sell_rally_10_20.png, Buy the Dip and Sell the Rally

As price action moves up, we would Sell the Rally back into the downtrend.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.