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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.

⚠️ 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. Terms of Service · 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.

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Position in 52-week range
Where price sits between the 52-week low and high. Lower = deeper dip = more points.
🎯
The opportunity signal
Depth alone is not enough — it is paired with the recovery and volume checks below.
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.

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Current move
A flat-to-positive day scores higher than a sharp continued fall.
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Close within day range
Closing near the day's high beats closing on the lows.
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.
⚖️
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.

See today's top dips → Run the screener

Not financial advice · Terms · Disclaimer