Quote from makloda:
Not predicting a market move, dip buying is about using the current underlying trend in your favor, not about predicting. I prefer not to fight the market.
I'm using the statistical bias that the underlying longer term-trend has a higher probability of staying in tact than the short term trend. It's not predicting, it's doing what worked historically with p > 0.5.Quote from Moneyball:
By buying the dips, aren't you predicting that the current underlying trend is going to continue? I mean, you're predicting that the "dip" is over and that we'll continue to go up from there.
All trading is about predicting in some form or another. There is no Holy Grail.