Pre-Sales Buy the dip VIP indicator question

Learnbot

Active member
I am not VIP member yet, however, thinking about subscribing to your discord and obtaining the "buy the dip" indicator. I just wanted to check something before I subscribe to VIP, would you be able to post an example of 1min chart for TSLA, Apple, ZM or whatever else stock you see fit (not penny stocks plz since I am not that educated to trade small caps yet). I wanted to see if Buy the Dip works for day trading as well as swing.

Edit: This thread has gotten very long. Added some info below for easier access to information.
Summary:
https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/page-23#post-89427

Helpful links for anyone interested in seeing how VIP members are using the BTD indicator to trade:
Customer's reviews:
More reviews can be found here: https://usethinkscript.com/threads/buy-the-dip-indicator-for-thinkorswim.3553/post-34186
 
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MerryDay

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Brand new premium member here--this may sound like a ridiculous question, so please excuse my ignorance.

I keep coming back to the same linked post about how BTD is not a buy signal, nor will it prevent you from trying to catch a falling knife (obviously). All it indicates is that a stock is dipping (significantly) and MAY have bottomed in the immediate time frame.

So I am guess I am still a bit confused what makes this BTD lauded as such as unique and powerful indicator.

I would love to hear from some more experienced users and traders here as to exactly how and why it has helped them and does things other indicators and strategies are perhaps unable to do.

Thank you!
Buying The Dip of strong long-term uptrending stocks is one of the oldest most profitable market strategies.

I have used several paid and free indicators to find lows over the last dozen years. Got ****ed in by the many repainters, tried bands and tried oscillators. I have left the BTD but have always come back.

While many members use the BTD in a myriad of ways. The 'classical' use of BTD is: to buy the dips of strong long-term uptrending stocks. The thinking being that the dip is momentary and it will bounce back faster and further. But that is the catch! Is the stock a strong long-term uptrending stock?

Luckily, the BTD is the earliest signal in my arsenal. The early signal allows me to do my analysis with our VIP 12 Essential Indicators:
https://usethinkscript.com/threads/...cators-of-for-swinging-and-day-trading.10766/
and review if it meets my profit goals:
https://usethinkscript.com/threads/anticipated-potential-profit-returns-target-for-thinkorswim.9401/
Choosing the right stock to trade has a much bigger effect on potential profits than any individual indicator.

I was a big swing trader of Buy The Dip and it paid the mortgage and then some, back when the market was predictable. With Russia on Ukraine's border. Powell threatening more interest rate increases, the analyst's making massive corrections to composite prices, supply chains still in disarray, and inflation rearing its ugly head, means the market is in flux. There is no trending strategy that performs well when there is no trend. Trades have been much more infrequent.

I still day-trade. Last Friday, was mine and most dippers: best day of the pandemic. Over 200 strongest stocks of the market were shown to have dipped and had the largest gains since 2020.
The Buy The Dip is the perfect vehicle for taking advantage of this type of volatility. Definitely, is an indicator for the more experienced patient investor.

There is no indicator that can be used in isolation. And no this is not a buy signal. The BTD definitively tells me that a stock has had a good dip. Whether you trade it, depends on your strategy signals.

If my research shows that a stock has extremely strong fundamentals, I buy without even waiting for my strategy to signal. The chance to buy into top stocks at bargain basement prices is a no-brainer and I don't want to miss the bounce. Otherwise, I wait for strong market trading days, strong sector days as shown in the sample strategy here: https://usethinkscript.com/threads/hello-help-buy-the-dip.7946/#post-90782 . (Hint, it is not time to jump unilaterally back into Tech, but OMGosh, so many energy stocks had dipped, look at what they are doing!)

Don't chase price. We have run up to the top of the volatility range of most top stocks, as shown with the volatility range indicator:
https://usethinkscript.com/threads/volatility-trading-range-v1-0.4676/
Best to wait for new dips.

Hope this helps. Join the VIP community on Discord if you have more questions!
BTD is not for novice traders. But for traders who understand the market, it is a required tool in your tool box.

Looking for more VIP indicators? There is something for everyone:
https://usethinkscript.com/forums/indicators-trading-setups-charts-strategies.60/
 
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drizzla

New member
VIP
Buying The Dip of strong long-term uptrending stocks is one of the oldest most profitable market strategies.

I have used several paid and free indicators to find lows over the last dozen years. Got ****ed in by the many repainters, tried bands and tried oscillators. I have left the BTD but have always come back.

While many members use the BTD in a myriad of ways. The 'classical' use of BTD is: to buy the dips of strong long-term uptrending stocks. The thinking being that the dip is momentary and it will bounce back faster and further. But that is the catch! Is the stock a strong long-term uptrending stock?

Luckily, the BTD is the earliest signal in my arsenal. The early signal allows me to do the research if the equity meets my personal definition of strong and long-term uptrending with: positive fundamentals, liquidity, volatility, sector performance, alpha, beta, over/undervalued and potential gain analysis. I have to go outside the app to get that data which takes time. But it is time best spent. Choosing the right stock to trade has a much bigger effect on potential profits than any individual indicator.

I was a big swing trader of Buy The Dip and it was easy money, back when the market was predictable. With Russia on Ukraine's border. Powell threatening more interest rate increases, the analyst's making massive corrections to composite prices, supply chains still in disarray, and inflation rearing its ugly head, means the market is in flux. There is no trending strategy that performs well when there is no trend. Trades have been much more infrequent.

I still day-trade. Last Friday, was mine and most dippers: best day of the pandemic. Over 200 strongest stocks of the market were shown to have dipped and had the largest gains since 2020.
The Buy The Dip is the perfect vehicle for taking advantage of this type of volatility. Definitely, is an indicator for the more experienced patient investor.

There is no indicator that can be used in isolation. And no this is not a buy signal. This definitively tells me that a stock has had a good dip. Whether you trade it, depends 80% on your research. If my research shows that a stock has extremely strong fundamentals, I buy without even waiting for my strategy to signal. The chance to buy into top stocks at bargain basement prices (as long as they are not tech) is a no-brainer and I don't want to miss the bounce. Otherwise, I wait for strong market trading days, strong sector days. (Hint, it is not time to jump unilaterally back into Tech, but OMGosh, so many energy stocks had dipped, look at what they are doing!)

Don't chase price. We have run up to the top of the volatility range of most top stocks. Best to wait for new dips.
Hope this helps.

BTD is not for beginner traders. But for traders who understand the market, it is a required tool in your tool box.

That was extremely helpful and insightful, thank you!
 

MerryDay

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raviraj75

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MerryDay

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Thanks for your honest reply. can you please let me know the most successful study or indicator you have used. ifyou can share the link would be helpful
Here are some of the indicators that I use: https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/page-23#post-92285
Links to these indicators can be found here: https://usethinkscript.com/threads/hello-help-buy-the-dip.7946/#post-90782

Back in 'normal times' when the stock market was on a tear; dips were tougher to find and curate.
But right now, we are having some of the best dips in the history of the market. It is a great time to be a dipper.
 
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raviraj75

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I don't use indicators for the most part. I buy the dips of absurdly successful stocks and ride the bounce. I make my entry based on price action and volume. Set my targets and exit based on price action and volume.

Back in 'normal times' when the stock market was on a tear; dips were tougher to find and curate.
But right now, we are having some of the best dips in the history of the market. It is a great time to be a dipper.
ty, is the Discord paid service, do you call out day trades and intraday trades?
I signed up for VIP how can i access discord? and how do i get access to premium indicators?
 
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MerryDay

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ty, is the Discord paid service, do you call out day trades and intraday trades?
I signed up for VIP how can i access discord? and how do i get access to premium indicators?
You could call out your trades and get feedback.
Members use Discord mostly to discuss chart setups, trading, ask for tech support, etc...
Here is how to join: https://usethinkscript.com/threads/how-to-join-our-discord-chatroom.4897/
Premium Indicators are found here: https://usethinkscript.com/forums/premium-indicators.36/
 

MerryDay

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The buy the dip is not a buy signal. It definitively tells me that a stock is having a good dip.

What is a Buy The Dip Strategy:
"Buy the dips" means purchasing an asset after it has dropped in price. The belief here is that the new lower price represents a bargain as the "dip" is only a short-term blip and the asset, with time, is likely to bounce back and increase in value. ~Investopedia

Buy The Dip is one of the oldest, most successful strategies on Wall Street.

You will see that the red on the BuyTheDip signaled on the below chart. I like that it is an 'early' indicator. Gives me time to verify that this fits my risk / reward parameters.
2aUaPIv.png


With the amount of volatility in the market, it is the perfect time to be a dipper.
 
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drizzla

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I had never seen trend lines on a lower study before. Did you add that as a mod to the BTD MTF? Would you be willing to share that lower study? I really like that visual, it goes well with my way of thinking. Thanks!!

@Billions - My trade plan/setup is a work in progress. at the time of this trade I was using the 1 hr and the daily side by side. I use the BTD Percentile and changed the fast and medium lengths to yellow arrows to tell me caution buys. The Yellow signals tell me to get ready. The long fired and it was bouncing off support and double bottom on the daily. I'm finding the BTD Percentile forces me to be patient and stop buying high which had been my trading weakness. Long calls just to see down days eat any premium I had.

since this trade my only chart will be the 2HR.

fG2tDEz.png


I hope this helps.
 

drizzla

New member
VIP
Hey, sorry to resurrect such an old post. I tried searching first. I am VIP member-- do you have the share link for this particular BTD_STR combined along with the MTF look? Would love to try this, thank you!

@Learnbot, I primarily trade off the 5min and 10min BTD_STR signals for large cap stocks. However, I do monitor the 2min timeframe while trading small cap stocks under $20.

BA was the only good example of where 2min worked today.

op77JBY.png


However, as it's a lower time frame, it will have more signals. Entries are more precise for bottom picking and top picking, but you do lose a majority of the move each time.
 

MerryDay

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Hey, sorry to resurrect such an old post. I tried searching first. I am VIP member-- do you have the share link for this particular BTD_STR combined along with the MTF look? Would love to try this, thank you!
Not sure what you are asking. Maybe @AlertBlake will have a better understanding.
In the meantime, if you are asking for the MTF BTD:
https://usethinkscript.com/threads/buy-the-dip-mtf-multi-timeframe-version.3548/
And if you are asking for BTD + STR: All in One:
https://usethinkscript.com/threads/original-and-conservative-btd-str-all-in-one.3768/
And here is the link that @GoldStriple has in the post that you referenced for the lower study:
https://usethinkscript.com/threads/btd-percentile.4404/
 

drizzla

New member
VIP
KING!

Thanks man. I can only imagine how many times the same questions get asked over and over again haha. Thanks for your help!

Not sure what you are asking. Maybe @AlertBlake will have a better understanding.
In the meantime, if you are asking for the MTF BTD:
https://usethinkscript.com/threads/buy-the-dip-mtf-multi-timeframe-version.3548/
And if you are asking for BTD + STR: All in One:
https://usethinkscript.com/threads/original-and-conservative-btd-str-all-in-one.3768/
And here is the link that @GoldStriple has in the post that you referenced for the lower study:
https://usethinkscript.com/threads/btd-percentile.4404/
 

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