December 28, 2007

Buying Dips In Uptrends, Selling Bounces In Downtrends

One of the most profitable and least risky trades is to buy the dips in an up trend and sell the bounces in a downtrend.

You may say how do I know when there are dips and bounces? You need to study and find indicators that give you these signals. By putting in the time to study and research you will find indicators that you can count on to give you this information.

It is hard to spot dips and bounces if you are just using bars or candle sticks to spot them. The indicators can be very reliable if you have good signals to warn you what the market is doing.

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