If a Stock Is Too Strong, What Signals Tell You It’s Safe to Enter?
As US stocks keep hitting new highs, do you often encounter this situation: a stock has solid fundamentals and beats earnings expectations, but there’s just no good entry point? Then when it finally dips, you're afraid of catching a falling knife and don’t dare to buy?
So how exactly should we choose our entry point?
Here are some commonly used buy-in reference indicators—let’s discuss them together:
When do you usually enter a position? Or do you follow another strategy? 👇
🟢 Technical reference price points:
Buy at the current price (no waiting—it’s strong and keeps going)
Wait for a pullback to the 5-day moving average (5MA)
Wait for a pullback to the 10-day moving average (10MA)
Wait for a pullback to the 30-day moving average (30MA)
Wait for RSI to drop back to around 50
Wait for RSI to approach the oversold zone near 30 and bet on a rebound
Start building a position if it drops 3% below the current price
Start scaling in if it drops 5%
Only consider buying after at least a 10% correction
Wait until it returns to the lower end of the daily chart structure
💬 Share your habits and reasons in the comments!
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My preferred strategy is to start building a position when the stock retraces to the EMA25 or EMA50. These moving averages often serve as solid support in an uptrend. I wait for the price to touch these levels and look for reversal signals before buying, which helps me avoid catching a falling knife and improves my entry timing.
I rarely buy at the current price unless there's a strong breakout with volume. More often, I scale in if the stock pulls back by 5% or more—but only after signs of stabilization. This method helps me manage risk better and enter with more confidence.
@Tiger_SG @Tiger_comments @TigerStars
When a stock is too strong, will typically wait for a pullback to the 20-day or 30-day MA, an RSI dip to around 40–50, or a price correction of 10% to 15% before choosing an entry point。。。
Tag :
@Huat99
Only consider buying in big amounts after at least a 10% correction.
@JoaJoa
以當前價格購買（無需等待-價格強勁且持續）
等待回調至5日均線(5MA)
等待回調至10日均線(10MA)
等待回調至30日均線(30MA)
等待RSI回落至50附近
等待RSI接近30附近超賣區押注反彈
低於現價3%就開始建倉
如果下降5%，則開始擴大規模
只有在至少10%的回調後才考慮買入
等回到日線圖結構的下端