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3 Pullback Trading Strategies You Must Know

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  3 Pullback Trading Strategies You Must Know Pullback trading is a perennial favourite among both new and seasoned traders. And it’s not surprising as looking for pullbacks ensures that you align yourself with the market . On top of that, it also allows for a superior reward-to-risk ratio. In this article, you’ll find ten handpicked pullback trading strategies.   3 Pullback Trading Strategies Strategy #1: The Holy Grail Setup (ADX) Linda Raschke’s Holy Grail setup uses the ADX indicator to locate a robust trend. Then, it uses a moving average to time the entry . ADX rising above 30 indicates a powerful trend in either direction. In this example, the bull trend is apparent. These instances of pullbacks to the 20 SMA were potential long pullback entries. Strategy #2: RSI Hidden Divergence The typical RSI divergence seeks reversal setups But the hidden divergence offers continuation trades. This chart below shows a bearish retracement trade. ...

Moving Averages pullback strategy

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    Moving Averages pullback strategy Moving averages offer a high return-on-investment for a minimalist trader. A moving average is simple to understand and serves multiple purposes for traders. A moving average can track trends and pinpoint entries. Hence, you often see moving averages in simple pullback trading strategies. Here, we will go through four approaches that take advantage of this elegant trading tool. The first two strategies use one moving average , while the other two use two moving averages . Strategy #1: Candlestick with Moving Average In this method, you’ll use the moving average as a support (resistance) zone . If you are already familiar with candlesticks, this strategy is straightforward. We need two ingredients: The market pulls back to the moving average. The market forms a candlestick pattern. Some candlestick traders haphazardly look for patterns and entries. This strategy avoids that problem as it offers a disciplined approach t...

Pullback Trading Strategies Indicators You Must Know

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  Pullback Trading Strategies You Must Know Pullback trading is a perennial favorite among both new and seasoned traders. And it’s not surprising as looking for pullbacks ensure that you align yourself with the market . On top of that, it also allows for a superior reward-to-risk ratio. In this article, you’ll find ten handpicked pullback trading strategies. You might be thinking – Do I need ten trading strategies to profit from pullbacks? No, definitely not. But you might find that some strategies appeal to you more than others. And this depends on the tools you’re familiar with and your market inclinations. Hence, getting a sense of the varied approaches is beneficial for any pullback trader. The chosen strategies are offer diversity and fall (more or less) evenly into three categories. Price Action and Lines Moving Averages Other Indicators We are aiming for an overview here. Hence, for each strategy, we will explain its basic idea, followed by a short example. ...