it is one of the strategies that is commonly used by different traders. you buy these pairs that you think have a good chance of a rise in the near future but you make sure to buy in the dip not if they are already high.
then wait for the rise you speculated about, to happen and then sell.
I was thinking of buying small amounts, setting sell orders around avg %^move of the peak.
I do the same but for the selling part I usually wait to see how strong the pump is. sometimes it is powerful enough to go much higher than I initially expected and sometimes it is much smaller so my sell order may not be filled.
at the same time you have to be careful not to be greedy to keep holding more than you really should. because with my strategy it is so easy to lose track and wait more and more and miss the peak.