in the above picture, the trend was in a uptrend and there were around 4 pullbacks. my question is how to identify a pullback and make a entry in a pullback, and also how to differentiate between a pullback and a trend reversal.
help will be really appreciated =D
Pullbacks are very easy to spot. First grab an fibo tool and apply on high on low, if price retrace back from any level. Your work is almost done half now.
Now see when price cross earlier high, a hugh volume will break previous resistance. Go long now with stoploss of previos low.
add more with more Pullbacks
just want to add one more point to Aditya’s reply…The pullback candles should have a low volume as compared to the Breakout candles. Also see the depth of retracement…when Volatility is High, the prices will have deeper and steeper retracements/pullbacks as compared when volatility is low. If the retracement low touches/crosses 61.8 level, one should change guard and be cautious for change of trend…N
