How We Calculate the DipBuster Score™

The DipBuster Score is a 0-100 rating that answers one question: is this a genuine dip worth buying, or a stock in free-fall you should avoid? It reads four dimensions of pure price action — no paid data feeds, no black boxes. Here's exactly how it works.

The Four Components

Why These Four?

The whole point of a dip-buying tool is to separate an opportunity from a falling knife. Dip Depth gets the largest weighting (40 points) because distance below the 52-week high is the opportunity itself: a stock at its high has no dip to buy. But depth alone is dangerous — plenty of stocks fall 60% and keep falling.

That's why Recovery & Momentum (30 points) matters next. It rewards stocks that are steadying or bouncing rather than accelerating downward, and it looks at where the price closes within the day's range as an early sign of buying interest stepping in. Volume Confirmation (20 points) asks whether that move is backed by real turnover or just thin, meaningless drift. Range Stability (10 points) is the final filter: a stock basing calmly scores higher than one whipsawing violently, which is usually a sign the selling isn't finished.

Every input comes from freely available price and volume data. We deliberately kept fundamentals, insider filings and social sentiment out of the Score so it stays fast, transparent and reproducible. Those signals live in their own tools — the Net-Net (NCAV) screener and the insider-activity feed on each stock page — where you can weigh them yourself rather than have them buried inside a single number.

What Score Means What

The Score maps to four signal bands:

• 68-100 — Strong Dip: a meaningful fall from the high that is stabilising on real volume. The highest-conviction setups.
• 50-67 — Dip Signal: a worthwhile dip with most, but not all, of the confirmation lined up. Worth a closer look.
• 35-49 — Watch: some dip characteristics, but the recovery or volume picture is incomplete. One for the watchlist.
• Below 35 — Not a Dip: the stock is near its highs, still falling hard, or drifting on no volume. No edge here.

A Worked Example

Numbers make this concrete. Take a hypothetical stock — call it Acme plc — with a 52-week high of 200p, a 52-week low of 100p, currently trading at 130p, up 2% on the day, closing near the top of its range, on 1.6× its average daily volume.

A 70 lands Acme just inside the Strong Dip band. Change one input and the picture shifts: if the same stock were down 6% on the day and closing on its lows, the Recovery component would collapse toward zero and the Score would drop into Watch territory — same depth, very different setup. That is the whole point. Depth alone is a falling knife; depth plus recovery plus volume is a dip worth studying.

The worked example above is illustrative — the exact point allocations follow the model described but are rounded for clarity. Methodology subject to ongoing refinement. Past performance of DipBuster Score thresholds does not guarantee future results. The Score is a screening tool that reads price and volume only — it is not a buy recommendation, and it does not assess a company's underlying business. Always do your own research.