Here Is How To Enter Pullback Trades

Most traders enter their trades through during the pullback phase, which is a very strategic approach. But it's very difficult to understand the exact correct time to actually enter the trade. Most traders just enter when the price reaches the key level. And others wait for a signal, which will happen when the price reaches the key level.

The correct answer is that you should wait for some kind of a signal, when the price reaches the key level, because this signal will tell you if its a buy, if it was an uptrend or a sell, if it was a downtrend is about to begin.

The most common pattern is that the pullback will have: • Lower highs and lower lows when you look at it in a smaller time frame for an uptrend • Higher highs and higher lows for the case of a downtrend

pullback image

So then, at the end of this, pull back on either up or down trend is where you want to see some kind of a signal. But in most cases, there will just be a 100% pull back which invalidates that smaller trend of your pull back in terms of the trend rules.

100% pullback image

On this 100% pullback, you want the right side of that V shape or right side of the 100% pullback to have some volume behind it. Ideally, not always. But at the end, the 100% pullback is a sign that the pullback is ending.

Now this is the moment that you should be preparing to enter a trade. You want to see a smaller pullback of the right side of the 100% pullback or right side of the V-shape. Then, on that pullback, if it's struggling, you enter the trade there.

pullback entry setup

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