First of all, there should be a catalyst when see these big moves up in stocks and that's smart to identify. RIOT has had a catalyst in the form of it's margins and growth as a result of bitcoin's rising value and as a result has entered a period of exponential growth. In my opinion, the best time to buy after a big move up like this is NOT the dip.
This is because if we are buying the initial dip going into staging area, we then have no confirmation of uptrend continuation (it is entirely possible for stock to plummet into distribution). It's also because after a dip there is going to be lots of buyers who entered at the prior high, many of which are trading with no game plan that will be watching their losses increase ready and happy to get out as soon as their losing position is at or near a break even price.
Many of these "dumb money" buyers who entered at the top will sell at/near their cost as the stock recovers from the dip and thus provide overhead supply which will push the price back down. Not to mention there will also be the buyers of the dip who may also be selling then too . The process will probably repeat multiple times before the next move up too , but with smaller moves up and down . Also , at some point the catalyst that is helping the stock move up will subside and the stock will eventually enter a distribution cycle .
To summarize , in my opinion, the best time to buy this kind of event is at the end of the basing periods just as the stock gives us a confirmation of uptrend by moving up with . Notice the reduces throughout this staging/basing period as the supply reduces and the weak holders are reduced . The is not always as evident as this particular chart and sometimes there will be more moves up and down as the stock contracts but as you may agree , the goal is not to buy low and sell high with this pattern .
It is to buy high and sell higher.
You can of-course buy the dip but at that point you don't have a confirmation that the stock wants to keep going up so you are reducing your possibility of success. In any case , don't omit your stop loss and respect a healthy risk/reward ratio .
To be clear , this is not just for RIOT, this is an entry method that can apply to many stocks ....
Good luck ~
“I become a buyer as soon as a stock makes a new high on its movement, after having had a normal reaction.”
I find that daily and weekly are both good .
You want to use this on stocks that are making big runs followed by staging periods , Tesla's chat does the same :)