The last few weeks have no doubt been nerve-racking for any long-biased trader. 

If you’ve been trying to buy the dip – I truly hope you kept your risk tight and exited the crashing stocks at your pre-determined stop levels.

If you haven’t – make sure to learn from this experience and don’t ever let yourself be overrun by the markets!

All bad things come to an end, though! It seems the worst of the selloff is behind us – for now, at least – and dip buying is finally starting to pay off.

I wanted to take a moment to explore what I think is one of the better dip-buying setups out there.

And it’s no wonder that the good stuff is once again brought to you by none other than our very own Ben Sturgill.

1, 2, 3 and Go!

If you stopped by The Workshop – Ben Sturgill’s live trading room – over the past few days, you’d note he spent a whole lot of time talking about a 1, 2, 3, and Go setup…

And it’s not something from professional sports training grounds, although it may very well have been!

No, in fact, this is a clean and repeatable chart pattern that Ben saw taking place across multiple momentum names. 

Here’s how it works:

1. A stock shows initial bottom – 1 – suggesting it may be finding support
2. Prints a failed up move – 2 – stopping out shorts who were overly aggressive
3. Makes another bottom higher – 3 – confirms strong support and the bullish thesis 
4. And goes – Go!

Here’s how it looks on the chart of Nvidia (NVDA):

And the best part yet? That double bottom with a higher-low gives you a very clean level to trade against!

This way, the risk on your bounce trade becomes very defined, and the upside significantly outweighs it!

And I’m not kidding when I say the trade is popping up all over the market. 

Here are Palantir (PLTR):

And here’s the monster bounce in Upstart (UPST) with the same exact chart:

Ben has surely found a gem with this one.

Let’s see how these games play out over the next few days and be sure to pay Ben a visit in The Workshop if you want to see more of these!