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Buy the Dip: Catch the Pullback with a Buy Limit

The trend is up, but every leg higher is followed by a dip. Chasing often means buying at a short-term high. Be patient: place your order below and let price come back to you.

Goal

Don't chase in an uptrend. Place a Buy Limit at the pullback level and get in at a better price.

  • Enter with a Buy Limit and close the trade at a profit
  • Every position has a stop-loss
  • Total profit for the session is positive
Rules

Risk warning: forex, CFDs, options, futures and crypto assets usually involve leverage or high volatility, and you can lose more than you put in. This lesson only teaches the concepts; all numbers are for illustration and are not investment advice.

Buy the Dip: Catch the Pullback with a Buy Limit · Trading practice · 72lab