Market Insights
Catching a Falling Knife: How to Use Technical analysis to Time a Bear Market Entry
When markets tumble and fear grips the financial world, the instinct to "buy the dip" grows strong. After all, the lower the price, the better the bargain—right? Not quite. Trying to buy an asset in free fall is often likened to "catching a falling knife"—a dangerous maneuver that can lead to painful losses if mistimed. Yet for seasoned traders and savvy investors, there are ways to reduce the risk and improve the odds of catching the market at or near a bottom. The key? Technical analysis. In this article, we'll explore how you can use proven tools to time a safer entry into a bear market—without losing a hand. The goal: Not to catch the bottom perfectly, but to improve timing using technical analysis.