Trading Setup: Buying Dips

[danjoh]

Finally reach a chart setup that I am happy with for now.
Any further advise on this setup would be welcomed. Oh, it would seem on this chart example there should be some BTD green balloons??? It is in my study set.

 

[MerryDay]

Finally reach a chart setup that I am happy with for now.

Many members have had success with the Buy The Dip Indicator on lower timeframes.
I just have to emphasize, (I promise for the last time) ... Starting out with the BuyTheDip Indicator on aggregations less than an hour is not the best way to learn this strategy. A 10-minute dip is not statistically relevant so the chances are the bounce is going to be immaterial. Resulting in trades with little reward and great risk. Try looking for dips on the 1hr chart and then use your strategy to find entry on the 10min or even 5min chart.

YOU CAN STILL DAY TRADE! Entry can be found as low as the 10min chart. (And many members trade on even lower than recommended timeframes.)

Here are some day trades from yesterday, found using this scanner:
https://usethinkscript.com/threads/buy-the-dip-daytrading-scan-strategy.9220/
There was a good bounce in the market yesterday. The stocks that signaled as dropping in the last 7 days, showed significant profits as they reversed on the 10min charts. AND THAT is the quintessential definition of Buy The Dip. Start with a strong trending stock, look for a dip, play the bounce.

The BTD is not a holy grail. It is not a buy signal. You must have strong chart analysis before making entry.
Not all scan results are tradable. $NTP stretches the definition of Strong Monthly Uptrend. I would not have made this trade, but even dead cats bounce on market days like these

How these stocks did yesterday:

 

[danjoh]

@Christopher84 kindly shared a chart with me that had this 3 phase candle setup. I am having trouble replicating it on other time frames. I can't seem to make it work on 3yr and 1 yr charts. Can anyone help?

 

[MerryDay]

@Christopher84 kindly shared a chart with me that had this 3 phase candle setup. I am having trouble replicating it on other time frames. I can't seem to make it work on 3yr and 1 yr charts. Can anyone help?

@Christopher84 can be found on discord. You can DM him there.

 

[SeeMoreGreen]

Many members have had success with the Buy The Dip Indicator on lower timeframes.
I just have to emphasize, (I promise for the last time) ... Starting out with the BuyTheDip Indicator on aggregations less than an hour is not the best way to learn this strategy. A 10-minute dip is not statistically relevant so the chances are the bounce is going to be immaterial. Resulting in trades with little reward and great risk.

YOU CAN STILL DAY TRADE! Entry can be found as low as the 10min chart. (And many members trade on even lower than recommended timeframes.)

Here are some day trades from yesterday, found using this scanner:
https://usethinkscript.com/threads/buy-the-dip-daytrading-scan-strategy.9220/
There was a good bounce in the market yesterday. The stocks that signaled as dropping in the last 7 days, showed significant profits as they reversed on the 10min charts. AND THAT is the quintessential definition of Buy The Dip. Start with a strong trending stock, look for a dip, play the bounce.

The BTD is not a holy grail. It is not a buy signal. You must have strong chart analysis before making entry.
Not all scan results are tradable. $NTP stretches the definition of Strong Monthly Uptrend. I would not have made this trade, but even dead cats bounce on market days like these

How these stocks did yesterday:

is that buy sell histogram listed on this website? having trouble searching for it

 

[MerryDay]

@SeeMoreGreen
Found It! The original stacked moving average buy-sell histogram can be found here:
https://usethinkscript.com/threads/madrid-trend-squeeze-for-thinkorswim.2244
I like moving averages when I want to display trend on a chart that I am explaining. But overall moving averages are a lagging indicator. I wouldn't use them to determine entry / exit.

I like all the Madrids. Here is another one:
https://usethinkscript.com/threads/madrid-bull-bear-sentiment-for-thinkorswim.9254/

Madrids are far superior to Multi Time Frame Moving Averages. By using different lengths, they mimic MTF indicators AND have the added benefit that they don't repaint.