buying the dip buying the pullback what am I talking about when it comes to day
trading and buying the dip I can talk about it in this video so stay tuned if
you want to learn more about the stock Martin you want to learn more about day
trading make sure you subscribe the channel hit that Bell notification tab
if you're a longtime subscriber thanks for watching so I just made a video
talking about a stock being overextended how to trade that what to look for and I
kinda want to talk about a dip I talked about a pullback and what I'm looking
for when I'm buying the dip and kind of you know what's going on there when I'm
buying the dip so on a stock like LBI X this morning I ended up getting I feel
like a pretty good dip by here and you can see this is the 1-minute chart this
stock pulled back it jumped up there above $2 up there to the 229 area and
then pulled back down to the $2 area and you can see kind of what's going on here
so this is a one-minute chart this is the 9 EMA here the blue line this is the
20 down here the yellow line so like I said I'm basically using the EMAs as
areas kind of as a trend indicator as long as this stock is staying above that
90 may it's enough upward trend I'm kind of looking ok you know stocks kind of
bounce of 90 ma people are looking to buy their other people are looking at
that common indicator the EMA is there and that's one of the reasons that I use
it on the chart that's the blue line the yellow line these are the EMAs
exponential moving averages and you can see here the stock jumps up to that 229
area finds resistance there the 229 area kind of right there 229 get stuck gets
pulled back the 90 MA is down here the 185 area so I'm basically looking to get
a dip by here back below $2 and look for that move higher so I end up getting
filled here at 195 it got down to 185 but it wasn't enough time to get filled
there you can see you it jumps back up pretty quick just got bought up right
there kind of pulling back there and then buying the dip there and then
looking to take profit as this thing went higher which it ended up exploding
the rest day but you can see kind of how to buy that dip there so the stock
obviously ran up big it made a big move from the dollar ad area up there to 225
and then pulled back and that's when I was looking to get in there I was
actually looking to get in there to break a $2 did not get filled
my okay I'm gonna wait for a pullback I'm gonna jump in there once I get that
dip and then I'll look for that pouf higher so I knew the 90 ma was there 180
area I saw that it bounced off the EMA there I saw that that buying was
happening there at the 185 area and there was buyers stepping up there so I
ended up getting in there at 195 put my order out there and got filled 195 on
the dip the ask I think was at $2 but I got filled there on the dip so that's
what I'm talking about when I'm talking about getting filled on the dip or
buying the pullback so this is a pullback the trend is still there the
stock's moving higher the trend is this nine EMA we're looking at here and
basically looking for the stock to keep heading higher obviously if this doctor
starts to crash say if I get in here at the 195 area and then the next candle
breaks through the 90 ma that's a bad sign and the stock could possibly go
lower so it is a little risky to buy here on the dip with the idea that you
know the next candle could really just keep going lower
but that's why I'm looking for the bottom this candle it hit that 185 area
the buyers are stepping up there I'm watching level 2 I'm seeing that there
are buyers there at the 180 area 190 area that's a good sign I'm thinking
okay I'm gonna buy the dip here I'm gonna jump in and then look for this
move higher instead of me buying up here the 225 year you hoping it's gonna go
higher seeing that overextended here I see that
it's pulling off the 90 ma there it's the 1-minute chart I pulled off the 90
ma it got really you know extended there and then looking for that pullback for
the dip there so I'm looking to buy the dip and that's what I did right there I
bought the dip and then sold into this move higher sometimes what I like to do
when I'm buying a dip here is I'll just go and put an order out there I see that
support you know the bottom is cannibals they're at the 180 area so maybe I put
an order out there at the 185 area hoping that we're gonna dip down it's
kind of putting that order out there before the stock gets there I'm thinking
hey the stock is on a pullback I'm gonna put an order out there so you get filled
and then if I do get filler you fill it if I don't I don't there's that me those
stocks that you know you're gonna try to get those dip eyes you're not gonna get
filled you're gonna be like 1 cent below where the stock went lower and it's
gonna be hard sometimes is gonna have that's opportunities kind of missed out
on but then there's gonna be those days
we're gonna get filled magically at the bottom of this candle you're not gonna
go til they're at 185 it would a beautiful move and then we get that move
higher from there so you gonna be really careful kind of looking for those
Supporter it's not just gonna be dip buying anywhere in every
we're gonna look for a key support areas that 90 ma was that support that I was
looking for there I'm watching the buyers I want to watch level 2 when we
make sure that those buyers are they're not just trying to be the only buyer
sitting there at 185 if I don't see any other buyers you're gonna cancel my
order if I don't see the stock really kind of bounce in and I don't want to
really just I don't want to get stuck another thing is I don't want to be
buying here as the stock is just getting pummeled and getting lower and lower I
see a lot of selling pressure so I'm looking at level 2 I'm kind of watching
and get an idea like okay this stock it's coming down a little bit but it's
they're still buying going on there's still action and still kind of popping
up kind of popping up and then pulling back a little bit but it's still you
know it's popping up there's buying pressure going on there I might not get
filled I might look you know it could be a lucky thing and it may get filled
there on the little bit of a dip but I'm not just trying to you know buy into
that falling crash of a stock I'm actually trying to look get kind of get
lucky with the dip by here and kind of look for those key areas of support so
we're not just buying as the stock is crashing we're looking for those key
areas this sucked the trend was moving higher I saw the 90 ma there you know
the two dollar area broke through there that whole doll or something and whole
dollars are gonna break normal you're gonna hold our brakes to go up for the
upside you get that break of like a whole dollar you'll get a little bit of
a pullback you know 10 15 cent pullback and then you get that move higher so
most of time you get this whole dollar breaks you get a little bit of a
pullback and you can jump in on that pullback and then look for that move
higher there if you can't get filled on that first initial pop and there's gonna
be those days where the stock just explodes through a hole doll or just
goes higher and higher and you have no chance for a pullback so you really got
to be you know trading a little differently but 99 cent the time the
stocks gonna pull back a little bit and give you that chance to get filled there
you know 5 cents 10 cents a little bit lower than a whole dollar so that's what
I'm kind of looking for when I'm looking for those dip buy is kind of looking for
that buying pressure there I want to make sure there's buyers there numbers
I'm not just gonna be the only buyer waiting there to get filled at 185 I'm
watching level 2 that's one of the reasons I always talk about level 2
being so important you only need to be watching level 2 Washington time and
sales make sure there's buying going on there if my order sitting there at 185 I
see people were behind still 186 180 it's kind of bouncing around I get a
quick dip to 185 I get filled that's a good sign now if it's just at 190 and
this is I see a bunch of sellers 195 sellers see a bunch of sellers at 190
it's going lower and lower might cut my order there it's good the
idea that it might go lower for a dip by or it might just want to crash so can I
be very careful not to buy the crash here we don't want to be the only buyer
sitting there gonna be very careful watching all these key indicators
watching those support areas I saw earlier that this stock bounced off the
1et air you made this move higher some thinking okay you know maybe we get to
win a 80 area get a little bit of balance if it doesn't bounce right away
if it gets stuck if it doesn't want to go higher I'm gonna take profit I'm not
gonna be stubborn there you can see I took profit pretty fast on this one it
made that move back up to the high a day after getting above that 230 area it
jumped up there 242 we can see a lot of selling pressure there so people taking
profit again you know people that were loading up here they didn't like it so
people were taking profit there you got the shorts piling in there later on it
made a move I think up to the 380 area so ll be IX all over the place today
crazy one but buying the dip sometimes pays off you got to be careful to not be
the only buyer sitting there waiting to get fill-in the dip you want to be kind
of like yeah you know there's a lot of other buyers here I'm kind of moving
their orders around kind of buying kind of sell in but you don't want to be the
only guy stuck there and the last one waiting to get filled so that's kind of
my take on the dip behind kind of the pullback and looking for those support
areas the more and more that you trade the more you can kind of read level 2
and you can kind of see okay it's pulling back here but there's a lot of
bonds so going on the time of sales is looking pretty good it's not just
crashing it's not just sell sell sell sell sell you know there's a little bit
of support as it's going down it's pulling back people are still buying
them but and that's what I won't look for them look for that trend still
holding I don't look for buyer still being there I don't want to be the only
buyer