because since no one knows at what point the price is going to drop, by gradually scaling in you ensure that you will be in the market at least somewhere when it starts to drop.
for ex., let's say you decide to wait until price reaches 2827 but down move suddenly starts from 2766. then what? you would have missed the move. similarly, if you wait until 2911, for ex., and move starts from 2827, you will be watching but not participating.
by entering limit orders or stop limit orders at all levels mentioned by sive, if the market retraces to at least the first level or more, your orders will be triggered and you will be partaking in of the selling frenzy.
make sure though to figure out how many lots you want the orders to be so as not to over-leverage.
Thank you Triantus, that was logical. It is just the question of SL orders. Do I put them on the place where I would do it for the last enter (in this case it is 1.2911). So if I enter at 1.2766 I put the SL order at the same place as I do with the enter on 1.2911 (I count my risk let say 0.5 or 1% on every entry, and accordingly risk the appropriate amount)?
