hope is in the air, page-28

Good debating here. Here are the three buys I would do:

1) Buy on the breakout that goes above 200 DMA or 30 WMA for the first time. This is the best entry opportunity.

2) If I miss out, wait till it pulls back close to the MAs with the dried up volume ( Note: this is a retracement , NOT a downtrend)

3) Buy on the continuous breakouts during the uptrend.

Averaging down in a major downtrend could be destructive. Two examples here are UCL and BLT. We don't want our precious capital to be locked forever or to go down the drain. By averaging down, you are actually betting on a major reversal. But what if that didn't happen or a bad news was announced during the down trend ?