How are you guys timing your re-entries after profit-taking on these recent small-cap runs?

Question

I’ve been watching counters like Multiverse and Wema Bank pull back slightly after hitting resistance earlier this week, and I'm trying to figure out if it's better to scale in now or wait for a clearer support level on the daily chart. Since this is just our demo portfolio, I want to test a disciplined scale-in approach rather than FOMOing back in all at once. What sort of volume indicators are you using on the NGX simulator to confirm the correction is actually over before buying back in?

Tunde Bakare · Answer

Omo, discipline is key, especially on these NGX small-caps where a false bounce can easily trap you. I usually don't rush the daily chart support; instead, I watch the volume profile to see if selling pressure is actually drying up during the pullback, combined with a waning MACD histogram on the lower timeframes. Since it's a demo, testing a tranches approach—maybe a small entry now and adding more only when volume starts ticking back up on a green candle—is a solid way to practice wi...

Amaka Chukwu · Answer

When analyzing pullbacks on high-beta NGX counters like Multiverse or Wema Bank, I find it more reliable to monitor the volume-weighted average price (VWAP) alongside a diminishing On-Balance Volume (OBV) trend rather than relying solely on static daily support lines. Since we're working within a simulation, this setup is ideal for testing a staged accumulation strategy—such as deploying 30% capital at a test of the 20-day EMA and holding the remainder to confirm if the volume profile truly...