If a Stock Is Too Strong, What Signals Tell You It’s Safe to Enter?

Tiger_SG
08-02
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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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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?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Comments

  • MHh
    08-03
    MHh
    I do a combination of a drop in price of at least 10% and RSI to approach 30 to gain confidence that the drop in price is due to over selling and it has become a possibly good price for me enter or add my position. I will be even more convinced if the price has pulled back to the 10 day or even 30-day moving average. @SPOT_ON @Success88 @Fenger1188 @LuckyPiggie @HelenJanet @Kaixiang @SR050321 @DiAngel @Universe宇宙 @Wayneqq come join
  • Shyon
    08-02
    Shyon
    I usually rely on technical indicators when deciding my entry point, especially in a strong bull market where prices keep hitting new highs. Even when a company has strong fundamentals and beats earnings, I often wait rather than chasing the price. Using technical levels helps me stay disciplined and avoid emotional entries.

    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

    • Shyon: 
      [Cool] [Cool] [Cool]
  • BTS
    08-04
    BTS
    There is no good entry point in trading, as every entry carries risk that ultimately depends on individual risk tolerance and the strength of the overall trend

    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

  • Success88
    08-04
    Success88
    There is no right or wrong answer. When there is a very strong bullish signal many investor will rush in to buy. Even though is all time high still will buy. FOMO is the key. Do depend on stock and that moment. But for me i usually look at the whole company profile, the PB, RSI and MA. @Tiger_SG
  • Spiders
    08-03
    Spiders
    I avoid chasing strong stocks at their highs, even if the fundamentals are great, and instead wait for better entry points based on valuation, trend behavior, and market context. My decisions balance risk and timing, guided by data, sentiment, and the conviction that missing out is better than overpaying
  • Star in the Sky
    08-03
    Star in the Sky
    Start scaling in if it drops 5%. Slowly accumulate good stocks.
    Only consider buying in big amounts after at least a 10% correction.
    @JoaJoa
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