If you’re going to Buy the Dip you’ll need to be able to locate it.
Be sure to consider the different time scales: don’t just trade a noisy, ranging 1 or 5 minute chart, look in the 30 mins, 1 hour or 2 hour charts too.
The inefficiencies of the price action may mean there are more trading opportunities in a lower time chart but there are no trading opportunities if it’s noisy and choppy!
Yesterday I had a load of trouble trading the S&P 500. I kept getting stopped out, the price action was moving about all over the place.
Here’s the 5 minute chart:
I didn’t lose that much but I might have done rather better if I’d looked at the 1 hour chart and bought the dip as shown below:
Just the one trade would have given me about 40 points.
To repeat what I said earlier: The inefficiencies of the price action may mean there are more trading opportunities in a lower time chart.
While the daily chart will be less noisy than say the 5 minute chart, you’ll be missing out on a whole load of trading opportunities by staying so high.