Dip Buying Calculator
Systematic strategy for market corrections
Strategic Dip Buying
This calculator helps you plan a systematic approach to buying stocks during price declines. Key benefits:
- Prevents emotional decision-making
- Optimizes capital allocation
- Provides clear entry points
Dip Buying Calculator
Strategize your purchases during market dips with optimized entry points.
Use Strategy Switcher Below
Dip 40% Strategy (4 Buy Points)
| Buy Point | Price (₹) | Dip % | Investment (₹) | Quantity | Value (₹) |
|---|
Dip 30% Strategy (3 Buy Points)
| Buy Point | Price (₹) | Dip % | Investment (₹) | Quantity | Value (₹) |
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Dip 20% Strategy (2 Buy Points)
| Buy Point | Price (₹) | Dip % | Investment (₹) | Quantity | Value (₹) |
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Dip 10% Strategy (2 Buy Points)
| Buy Point | Price (₹) | Dip % | Investment (₹) | Quantity | Value (₹) |
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Investment Summary
Dip Buying Best Practices
When to Use This Strategy
- With fundamentally strong companies
- During market-wide corrections (not company-specific issues)
- When you have a long-term investment horizon
📌 Pro Tip:
Use support levels or RSI <30 to confirm a true dip before buying.
📝 Example:
"Stock fell 15% from ₹200? Buy zones: ₹170 (strong support) or ₹160 (oversold)."
Dip Buying Strategy FAQs
What is the "dip buying" / "buy the dip" strategy in stock market investing?
The "buy the dip" strategy involves purchasing assets when their prices experience temporary declines within an overall uptrend. Professional traders use technical indicators like RSI below 30, MACD crossovers, or support level bounces to identify genuine buying opportunities rather than catching falling knives.
How do you calculate optimal buy zones after a market dip?
Optimal buy zones are calculated by:
- Identifying key support levels (previous price floors)
- Measuring Fibonacci retracement levels (38.2%, 50%, 61.8%)
- Waiting for oversold conditions (RSI < 30)
- Using our Buy the Dip Calculator to quantify percentage declines
What are the risks of buying the dip without proper analysis?
Key risks include:
- Mistaking a downtrend for a temporary dip (catching falling knives)
- Overlooking deteriorating fundamentals behind price drops
- Emotional decision-making without confirmed technical signals
- Concentration risk by averaging down too aggressively
Which technical indicators best confirm a true buying opportunity?
Professional traders combine these indicators:
- RSI (Relative Strength Index): Below 30 suggests oversold conditions
- Volume Analysis: Declining volume during pullbacks indicates weak selling pressure
- Moving Averages: Bounces off 50-day or 200-day MA suggest trend continuation
- MACD: Bullish crossovers during dips signal momentum shifts
How does the "buy the dip" strategy differ in bull vs bear markets?
| Market Condition | Dip Buying Approach |
|---|---|
| Bull Market | Shallow dips (5-15%) are buying opportunities with tight stop-losses |
| Bear Market | Requires deeper discounts (20%+) and fundamental reassessment |
| Sideways Market | Range-bound strategies work best (buy support, sell resistance) |