Unsure about buying the dip? This key trading indicator makes it easier

Unsure about buying the dip? This key trading indicator makes it easier


When an asset enters a bear phase and the headlines are negative, analysts project further downside, and the sentiment shifts from optimism to pure gloom and doom. This results in panic gripped traders dumping their positions near the bottom of the downtrend instead of buying. 

How can traders go against the herd and build the courage to buy in a bear market? It is not easy because if they purchase too early, the position may quickly turn into a loss. However, if they wait for too long, they may miss the early part of the rally.

Although pulling the trigger during a bear phase is difficult, the relative strength index (RSI) indicator can identify market bottoms and favorable risk to reward scenarios.

Trending: 8 BOXES REMAIN – Hand Recount Nearly FINISHED – HUGE Discrepancies Expected – NO BALLOTS = NO VICTORY

Let’s review a few examples of when to buy in a bear market.

Look for extremely oversold levels on the RSIBTC/USDT daily chart. Source: TradingView

Bitcoin (BTC) topped out close to $20,000 in December 2017 and started a long gut-wrenching bear

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