Trend pullback

What it is

A trend pullback strategy waits for a clear trend, lets price pull back against it, and enters as the pullback ends and the trend resumes. The pullback gives a better price and a logical stop.

How to spot it

• Higher highs and higher lows (uptrend).
• A pullback into a moving average, a zone, a 50–61.8% retracement or an FVG.

How to use it

• Enter when the pullback shows signs of ending (a rejection candle or a small structure break back up).
• Stop below the pullback low; target the previous high or beyond.

Common mistakes

• Calling every dip in a range a pullback.
• Buying deep pullbacks that have actually broken the trend.

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