Reading Time: 6.65 minutes. 11K views. Posted 1 year ago.

Learn to buy the dip and never work a day again in your life.

Everyone has heard of Buy The Dip...

Easier said than done right?!?

Well, not anymore.

Let me show you how you can find the dips with a single click.
Price is what you pay. Value is what you get. — Warren Buffett

What exactly does Buy The Dip even mean?

Buy The Dip refers to purchasing an asset, like a stock or cryptocurrency, after its price has fallen from a recent high. Investors view this drop as a temporary decline, believing the asset is undervalued at this lower price. The strategy assumes that the price will revert to the mean over time—meaning it will return to its average or typical value after falling below it.

Reversion to the mean is a concept that suggests prices tend to fluctuate around a historical average. When an asset's price drops below this average or mean, it may present a buying opportunity, as the price could rise back toward that mean. Essentially, buying during a dip is like getting the asset at a discount, with the expectation that its value will bounce back.

You can find DIPS two ways

  1. Click a dip on our charts & then click FIND TRADES to find similar DIPS.
  2. Use a screener or a pre-saved leaf to screen for similar DIPS.

You aren't buying the dip. You are buying other people's pain. Look at the chart and think where is the most amount of pain. Then place your buy orders there. Price tends to revert to mean once the fear subsides.

Why Buying The Dip Works (most of the time)

Buying the Dip works most of the time because markets that trend tend to stay in trend. Historically, markets like stocks move upward over time, with dips along the way. Studies show that markets are in an upward trend around 70% of the time, meaning that dips are usually temporary pullbacks in an overall rising market.

The idea behind buying the dip is to act as a contrarian—doing the opposite of what most people do. When prices drop, many investors panic and sell, but those who buy during these dips often profit when prices recover. Most people lose money in markets because they follow the crowd, selling when prices fall and buying when prices rise. To avoid this trap, you have to think differently and see a dip as a buying opportunity rather than a signal to sell.

This strategy works because of a reversion to the mean. After a price drops below its average, it often rebounds back to or above its historical trend. By buying during the dip, you're taking advantage of this reversion, betting that the asset is undervalued and will eventually return to its upward path. However, it’s important to recognize that this works best when the market is in a healthy, long-term trend and not during a prolonged downturn or choppy sideways action.

Don't follow the crowd. But do follow the larger trend. Be a contrarian but don't be a fool.

Stop talking! Let's find some dips ...

Here is a basic step-by-step break down of how to use WealthBranch to find and manage a dip.

Step 1: How To Find Dips in a Single Click

WealthBranch’s "Buy The Dip" button puts you right in the action. With a single click, you’ll be taken to a list of assets that have sold off with the potential of recovery.

How to find Buy The Dip opportunities in app ...

Simply use our ONE-CLICK screener.

  1. Login to our app
  2. When logged in, click [ Screener ]
  3. Then click [ Buy The Dip ]

WealthBranch does the heavy lifting of sifting through data to present the best candidates for your strategy. Think of it as your personal market scout, finding the deals before the crowd. After clicking "Buy The Dip," you'll see a list of stocks that match the setup.

The key is to pick stocks with ...

  • High trade protect score to keep you in good fundamental companies
  • Oscillators are turning up and entering an up trend (reversal)
  • Bounce off the longer term EMA (support)
  • Dont have any recent bad news
  • Dont have earnings days coming up. Stay out of the way!

Once you're in the "dip ZONE," it’s time to get strategic. WealthBranch’s advanced screening system evaluates stocks based on technical indicators and market trends, ensuring you’re not just buying cheap, but buying smart.

When buying the dip, we want oscillators that are turning upwards and we want to ride that wave BEFORE the crowd comes in.

Step 2: Review The LEAF Page

Once you’ve zeroed in on a promising asset, it’s time to dig deeper. WealthBranch’s detailed data page — known as the LEAF page — gives you a comprehensive view of historical trends, volatility, and key metrics to set up your trade.

On the LEAF page, you can view:

  • Days Until Earnings
  • RSI Momentum
  • Short and Long Term Trend Line Support
  • Technical Analysis Score 0 (bear) - 100 (bull)
  • Trade Protect Score (so you dont get REKT)
  • News Sentiment Score (to see what the sentiment is)
  • 52 Week Range (for an idea of how oversold the asset might be)
  • Monthly Volatility% (to get idea of where price could move in 30 days)
  • Target & Stop-Loss Calculator (to plan your trade)
  • 30, 60 and 90 Day Forecast (based on historical LEAF analysis)
  • 50+ Indicators tracked in our oscillators (to front run the bots!)
  • ZONE Number (explained in our stage analysis article)
  • LEAF Pattern Visualizer (a snapshot of the technicals to find trades)

Step 3: Check The Stop Loss Calculator

Now that you’ve found the right trade setup, it’s important to check your risk-to-reward ratio. This helps you fine-tune your entry and exit targets. You can save your favorite ratios and re-use them on other trades and assets.

  • Below the chart you can click Calculator to calculate your stoploss levels.

With these tools, you're not guessing—you’re trading with confidence!

Step 4: Save and Share Your Trade Setups

Want to stay organized, show off your trading skills, or share with a friend? We’ve got you covered. The traders behind WealthBranch have made seven figures using these same strategies, and now they’re sharing them with you. There’s plenty of opportunity for everyone—if you know where to look. Share your WealthBranch insights and help a friend.

Save LEAF Patterns To Your Account

Staying organized can make or break a trader’s success. With WealthBranch, you can save your trade setups into custom baskets. Track them, revisit them, and adjust your strategy as the market changes. It’s like a super-efficient trading journal.

Find and Share Unique Trade Setups

There are over 10 million patterns. Maybe you’ve discovered a unique LEAF pattern. Share it and see what others think.

Who wouldn’t love a friend who brings financial success to the table? Imagine being that friend who opens new paths to wealth!

Get a Second Opinion

For influential traders, sharing setups is as simple as copying a link. Whether you want feedback or group analysis, this feature connects you with your peers to help you refine your strategy.

Picture collaborating with fellow traders, sharing insights, and refining strategies together. WealthBranch makes it easy to share setups, creating a powerful network for success.

BONUS TIP: Find similar trade setups from the past?

We backtested over 10 million patterns to help you find trade setups today that match those chart setups from the past.

  1. Click anywhere on the chart and watch the LEAF animate.
  2. Click the LEAF to see backtests and forecasts for that pattern.
  3. Click FIND TRADES to see setups happening right now that match.
  4. Save the LEAF pattern to your account for later recall of new setups.

Here is one more example to drive the point home. You can click moments in the past to find similar trades today!

See it for yourself! Click anywhere on any chart of a moment you want to re-create and the LEAF will find you trades TODAY that match.


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