Whilst pullback trading is straightforward, it can become time-consuming to look for trades, especially when using other strategies and systems. To increase your trades odds you could combine the trendline with Japanese candlestick patterns that would then confirm that price is looking to continue the move off the trendline. The example below shows how you could use trendlines to find simple, but high probability pullback trades to get long with the trend higher.Īs price moves higher it is regularly pulling back into the trendline and giving you a chance to look for long trades.
![advanced get mt4 indicator advanced get mt4 indicator](https://img.informer.com/pa/advanced-get-v11.4-main-window-outlook.png)
Two strategies you can use to find these important market levels are key areas of support or resistance and using trendlines. One of the simplest strategies to trade pullbacks is to use important market levels. You would rather wait for price to pullback into a value area and then make your trade.Īs the example chart below shows even though price is making a clear trend lower, it is still making regular pullbacks higher and giving a lot of opportunities for traders to get short.
![advanced get mt4 indicator advanced get mt4 indicator](https://forexpops.com/wp-content/uploads/2021/01/Auto-Trendline-Indicator.jpg)
When pullback trading you are looking for price to make a rotation or ‘pullback’ from its current level.įor example price may be making a strong trend lower, but you don’t want to sell at the market swing low. When trading from pullbacks you are trading with the overall markets trend and momentum and you are often entering high probability trades. Pullback trading is an extremely popular way to trade the markets.