: Traders watch for an "oversold" signal (RSI < 30). A buy signal is generated when the RSI hits this low point and begins to "bounce" upward alongside the price.
By waiting for the bounce rather than predicting the bottom, traders can minimize risk and align themselves with emerging momentum. bounce buy
: A true bounce is typically confirmed by an increase in trading volume, indicating strong conviction from buyers at the support level. Bounce Buy vs. Dead Cat Bounce : Traders watch for an "oversold" signal (RSI
It is critical to distinguish between a genuine recovery and a such as the 50-day MA
: A high-probability setup occurs when the price "bounces" off a major moving average, such as the 50-day MA , often viewed by institutional investors as a key psychological floor.
: The trade is entered once both technical conditions are met, providing a higher "signal strength" for the buy.