Buy the Dip

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Buy the DipMicro E-mini Nasdaq-100 Index FuturesCME_MINI:MNQ1!SidgateBuy the Dip and Breakouts are heart and soul of my trading plans, even in choppy markets. Here is how I identify Buy the Dip areas and how I trade them. Identifying Buy the Dip Areas 1. Accumulation/distribution areas 2. Daily Session Volume Profile 18:00 - 17:00 New York time 3. Extended trading hours SVP 18:00 - 09:30 4. Regular trading hours SVP 09:30 - 17:00 5. Cup rims 6. Pivots 7. Double Bottoms 8. Head & Shoulders NOTE: Buy the Dip is a general term I use for an important past price zone. This is where I look to enter a trade. The two most important factors are #s 1 & 2 above. The daily SVP point of control is important, especially if it has not been crossed. Even in this sharp downturn we've had since Tuesday, 12/30/2025 to the end of Wednesday 12/31, I made a bundle trading Buy the Dip areas, one of which was the VPOC that formed on Thursday, 12/18/2025. I usually show VPOCs on my charts. Right now, my Buy the Dip areas are wider than usual due to all the chop we've had since October 10, 2025. On this chart I have superimposed a free indicator I recently found on Trading View. It is called "Pivot Point Profile" by LuxAlgo. He gives an informative overview of it on YouTube. Forgive how busy this chart is. In this chop we need all the information we can get in order to correctly interpret the charts. Notice that the 12/31 close is at one of his supports and at the low of one of my Buy the Dip areas. I'll be watching this area closely for a possible bounce. Trading Buy the Dip Areas 1. MNQ Buy the Dip ...a. 5m chart bounce at a Buy the Dip area ...b. Buy 1 contract in 5-point intervals starting at a point of my choosing to the bottom of the bounce. ...c. Target: $40.00 profit after fees and commission for each individual entry. NOTE: This is a risky trade as are all trades. Sometimes after the initial bounce the price plummets. It takes considerable experience to tell a good bounce from a not so good bounce, even then surprises come along. I have not done one of these for a while due to the market chop. When not so choppy, I find them worthwhile. You must determine if it fits into your trading style, trading plan and margin. 2. Jokers ...a. I buy three MNQ contracts at Buy the Dip areas and at Pivots ......i. A Buy the Dip area is a pivotal area. ......ii. A Pivot is a single candle low where the price changes direction and goes up considerably, usually accompanied by high volume. ...b. Target: $200.00 profit per contract after fees and commission. ...c. I buy these in increments of 20 - 50 points depending upon how promising the chart is or isn't. 3. Breakouts ...a. 5m chart bounce at Buy the Dip area ...b. Stop market entry above the bounce ...c. Quantity ......i. The better the Buy the Dip support the more I buy. ......ii. The further away the price moves from that support the fewer contracts I buy. ...d. Target(s): 19.75 points. NOTE: I trade these like climbing a ladder. I hate leaving money on the table; therefore, I take profit every 19.75 points. To make the math simple I buy at numbers divisible by twenty. Breakouts are the meat and potatoes of my trading. Most of my profit comes from these. I always have Breakout orders in place. I find them very useful on days when important news events occur. So much more could be written and has been written in my prior posts to flesh out these plans. This post is meant to be a bare bones, easy to understand rendition of how I identify and trade Buy the Dip areas.