Pullback trading may be a perennial favorite among both new and seasoned traders. And it’s not surprising as trying to find pullbacks ensures that you simply align yourself with the market. On top of that, it also a superior reward-to-risk ratio allows.
In this article, you’ll find ten handpicked pullback trading strategies.
You might be thinking – Do I want ten trading strategies to take advantage of pullbacks?
No, definitely not.
But you would possibly find that some strategies appeal to you quite others. And this relies on the tools you’re conversant in and your market inclinations. Hence, getting away from the numerous approaches is useful for any pullback trader.
The strategy chosen is to offer diversity and fall ( less or more ) evenly into three categories.
Price Action and features
We are aiming for a summary here. Hence, for every strategy, we’ll explain its basic idea, followed by a brief example.
So make certain to go to the link to the respective strategy guides for detailed rules and more trading examples.
PRICE ACTION and features
If you would like to avoid indicators altogether and specialize in price action, concentrate here.
The three strategies during this section use trend lines, channels, and retracement lines. In a nutshell, we Will find pullbacks by drawing lines on our charts.
STRATEGY 1: TREND LINES AND CHANNELS WITH PULLBACK TRADING
STRATEGY 2: TREND LINE METHOD JOHN HILL’S
STRATEGY 3: 50% RETRACEMENT TO PULLBACK
STRATEGY 4: MOVING AVERAGE WITH CANDLESTICK
STRATEGY 5: THE MOVING AVERAGE TO TWO-LEGGED PULLBACK
STRATEGY 6: HULL MA WITH WEIGHTED MA
STRATEGY 7: TRADING SETUP 9/30
STRATEGY 8: (ADX) THE HOLY GRAIL SETUP
STRATEGY 9: DIVERGENCE HIDDEN RSI
STRATEGY 10: HEIKEN-ASHI WITH ZONES PULLBACK TRADING