How do you decide when is right time for dip and add more

As example of Prakash Industries rallying now over 50% within 3 months I am looking to keep invested in it for longer period.
Whats factors should I consider while to buying more quantities?

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Wait for a .382 or .5 Retracement to happen, and add more when the price once again CLOSE ABOVE the high from which the retracement was calculated.


In layman’s terms When Stock is in Strong Uptrend.
Whenever the Price touch 20 EMA you can add more quantity.
(Swing Traders Add more Quantity at This levels)

You can also add When ever Stock price touch 50EMA or 100 EMA and your investment Period is for more than 3 to 4 years.
(Fundamental analyst Add more Quantity at This levels)

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Hello @Lets_Invest, could you please let me know what is this EMA that you are talking about and how is it calculated ? Thanks in advance bro

EMA= Exponential Moving Average Nothing but a Moving Average.

An exponential moving average (EMA) is a type of moving average that is similar to a simple moving average, except that more weight is given to the latest data.

12 Dec 2017 Was the Date of Golden Crossover of 50EMA & 100EMA.
Investor and Swing Traders are Always in Search of This Crossover in Good Stocks.


Now, Say You are Bullish on stock and wanna Keep Adding some Qty so, Whenever the Stock Price is Touching 20EMA & 50EMA You can add More Qty.


Thanks @Lets_Invest
This helps to understand the graph and dips. :+1:

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Welcome :+1:

What is the reason to say when 20EMA crosses 50EMA we can buy ? In your example you were describing 50EMA with 100EMA.

Is it because this(20 crossing 50) is the first cross to happen and then only 50EMA will cross 100EMA ?

Yes, you can do that.
Whatever The combination you like you can implement and BackTest.

But This 50 & 100 combination is famous all over the world tried & Test method and in long run give best results.

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Is there any free tool which gan give this EMA graph ?

Yes, there are many free website try this.

Well explained @Lets_Invest. But there is chance when LTP goes below 20 ema and so the trend can reverse rite?

Yes, This is a Signal for Swing Traders to Exit from stock. Although he/she can wait but Those who have Invested for 1 or 2 week should Exit.
But A long term Investment should use this opportunity to add more.