A pullback is a price movement that moves in against the trend. It is a temporary price movement before it resumes back into the main market direction.
There are several benefits to trading pullbacks. Some of them are as follows:
1. Trading pullback lets you have a tighter stop loss as your trade location is good and this gives you a better risk to reward
2. From a psychological standpoint, it’s easier to pull the trigger as you’re buying high and selling low
There are weak pullbacks and strong pullbacks. We want to trade the strong ones.
RULES:
1. Make money management
2. Risk:Reward ratio is at least 1:2, better 1:3
3. Timeframe ise 4H. You can use any other timeframes
4. No early entries
5. You can use 20-50-100 EMA for extra confirmations.
6. You can use Fibo levels for extra confirmations.
7. You can use trendlines for extra confirmations.
8. You can use candlestick patterns (engulfing, pinbar, doji..) for extra confirmations.
9. You can use pivot points for extra confirmations.
You can add value to this topic with your findings and charts. Thanks in advance.
VIDEO:
There are several benefits to trading pullbacks. Some of them are as follows:
1. Trading pullback lets you have a tighter stop loss as your trade location is good and this gives you a better risk to reward
2. From a psychological standpoint, it’s easier to pull the trigger as you’re buying high and selling low
There are weak pullbacks and strong pullbacks. We want to trade the strong ones.
RULES:
1. Make money management
2. Risk:Reward ratio is at least 1:2, better 1:3
3. Timeframe ise 4H. You can use any other timeframes
4. No early entries
5. You can use 20-50-100 EMA for extra confirmations.
6. You can use Fibo levels for extra confirmations.
7. You can use trendlines for extra confirmations.
8. You can use candlestick patterns (engulfing, pinbar, doji..) for extra confirmations.
9. You can use pivot points for extra confirmations.
You can add value to this topic with your findings and charts. Thanks in advance.
VIDEO:
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Attached Image (click to enlarge)
