Advanced Lesson 14 of 18 · 6 min read SwingLong term
Reading the dip board
Cumulative drawdown, the exact Strong, Early and Watch rules, and a journal exercise for checking the evidence.
- The dip board starts with the cumulative decline from the 52-week high, then checks the distance to a recent closing low.
- Strong, Early and Watch are research tiers. The higher tiers add stricter price, daily-move or volume checks.
- A tier describes the latest scan. It does not confirm a recovery, set an entry price or predict a return.
The dip board turns the trader's spreadsheet rules into a shortlist. A stock can rise in the latest session and still sit far below its yearly high. It can also fall for one session while remaining close to that high. The board separates those situations by measuring the whole decline.
Read the decline and the recent low together
From the 52-week high measures the percentage change from the highest intraday price in the past year to the latest available price. The month and quarter reference columns use daily closing prices from the past 30 and 90 calendar days. The dip tiers use the 30-day closing low.
A large decline describes price history. It does not establish that the company is cheap or that its old high will return. The reason for the decline, upcoming earnings, company news and the broader trend still matter.
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Log inEducation only. Not personal investment advice. Examples use round numbers for clarity; check current prices, fees and rules before acting.