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Methodology
How DipBuster works
The DipBuster Score is a composite signal — not a magic formula. Here's exactly what goes into it, what it means, and what it doesn't.
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Not financial advice. DipBuster is a research tool that surfaces publicly available data in a structured way. Nothing on this site constitutes a recommendation to buy or sell any security. Always do your own research. Past signal performance does not guarantee future results.
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Full Disclaimer
The Score — What Goes In
1
Dip Depth Up to 40 pts
The core of the Score. How far the stock trades below its 52-week high — because a stock sitting at its high has no dip to buy. At the high it scores zero; at the 52-week low it scores full marks.
2
Recovery & Momentum Up to 30 pts
This is what separates a stabilising dip from a falling knife. It rewards a stock that is steadying or bouncing rather than accelerating downward, and it looks at where price closes within the day's range as an early sign of buyers stepping in.
3
Volume Confirmation Up to 20 pts
A move backed by real turnover carries conviction; a move on thin volume usually doesn't. We compare the day's volume to the stock's 3-month average — around average earns a moderate score, well above average earns full marks.
4
Range Stability Up to 10 pts
The final filter. A stock basing calmly scores higher than one whipsawing violently, which is usually a sign the selling isn't finished. We measure the intraday high-to-low range relative to price — tighter is steadier.
ℹ️ The Score reads
price and volume only. It does not assess a company's fundamentals, valuation, or insider activity. Those signals live in their own tools — the
Net-Net (NCAV) screener and the insider feed on each stock page — so you can weigh them yourself rather than have them hidden inside one number.
Reading the Score
68–100
STRONG DIP
Deep fall from the high that is stabilising on real volume. The highest-conviction setups. Warrants serious research.
50–67
DIP SIGNAL
A worthwhile dip with most of the confirmation in place. Worth a closer look.
35–49
WATCH
Some dip characteristics, but recovery or volume is incomplete. One for the watchlist.
0–34
NOT A DIP
Near its highs, still falling hard, or drifting on no volume. No edge here.
The score is a starting point for research — not an instruction to trade. A score of 80 doesn't mean buy 10,000 shares tomorrow.
How High Scores Can Play Out
The table below is a hypothetical illustration of how a set of high-score signals might resolve over 12 months — including one loss, because no signal is infallible. These are anonymised example holding types, not real signals or an audited track record. We do not publish a verified backtest.
Example holdingScoreBasisHypo. 12m
UK technology (large-cap)
76
illustrative
+34%
UK energy major
71
illustrative
+18%
UK bank (large-cap)
74
illustrative
+22%
UK industrial (mid-cap)
78
illustrative
+41%
UK aerospace (large-cap)
80
illustrative
+187%
UK media (mid-cap)
68
illustrative
−8%
Hypothetical illustration only — not real signals, not a track record, and not investment advice. Past performance is not a reliable indicator of future results. Figures are for education, to show that a signal-based approach produces both winners and losers.
What the score doesn't account for
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Qualitative moat
Brand strength, regulatory advantages, management quality — none of this is in the score. Numbers only.
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Macro environment
Interest rate cycles, currency moves, and geopolitical events aren't captured.
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Legal / regulatory risk
Ongoing investigations, patent disputes, or regulatory changes won't show up until they hit financials.
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Breaking news
The score is updated daily, not in real-time. A profit warning can change everything overnight.
See it in action
Browse the leaderboard, run the screener, or pull up any stock to see its full DipBuster Score breakdown.
Not financial advice · Terms · Disclaimer