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Pullbacktrade

Is YINN ( Chinese 3X )ready to re-enter or add to the position?YINN is shown here on a 15-minute chart. It had several good NY sessions in a row adding about 4% daily. In the last session however, it had a 3% pullback to its present price. Fundamentally, the Chinese central bank in just the past few days, lowered the prime rate something the US fed has been unwilling to consider. There can be little doubt that this will be helpful to Chinese stocks overall. On the chart, I find several confluences that give YINN support and so make it likely that YINN will have a bullish continuation: (1) it is currently at the same value of the POC line. (2) it is currently near to the convergence of the SMAs 50 20 and 10 from the Alligator indicator (3) it is sitting just above the line representing one standard deviation above the anchored mean VWAP Given these confluences, the support is strong favoring my analysis that YINN is ready for me to add to my position which was very profitable when I took a partial closure of my shares at the beginning of the last trading day. I am confident that the buy high and sell higher in an uptrend is the best approach to gain with low risk.
AMEX:YINNLong
by AwesomeAvani
BTCUSDT Trapped in a DiamondChaikin Money Flow oscillator hidden divergence suggests price action has peaked at supply zone. H4 Overbought. Price trapped by throwing-over diamond top chart pattern by overnight but printing lower high, validating wave (ii). Expecting a profitable impulsive swing downward towards 14.6% Fibonacci retracement level amid 27970, completing wave (iii) @ local demand zone for a potential reaction with anchored VWAP from ATH, i.e. 7% drawdown to a short-term 2D swing trade. Whales maybe sell bulls confidence.
Short
by firmestudio
2
Long trade in ONONUBS analysts doubled down on its bullish view on the stock today. They have Buy rating on ONON and a price target of $42. Shares are up 5% today on the news. This stock has been a favorite of mine for several months. It went public in late 2021. It performed great initially. But the 2022 bear market gave it a beating. ONON has more than doubled off its 2022 lows and the company is growing sales at an astounding 80% quarterly rate. Shares dipped below the 50-day moving average (red line on chart) in May and did an “undercut & rally.” This is where a stock will breach a previous support area triggering thousands of stop losses and taking investors out. Institutions often buy here and drive the price back above support (dashed line on chart) to continue the move higher. Investors may consider buying here with a 10% stop loss near 27.25.
NYSE:ONONLong
by rossgivens
GPS jumped on mediocre earningsGAp, Inc had a little pop after mediocre earnings to break its downtrend. IT put in an engulfing bull candle to strike three smaller red candles. This could be considered a bullish sign. However, the trend down has been much of the year with two head and shoulders along the way. There has been no significant net accumulation of stock. I suppose there was a volume spike of buyers thinking they were seeing the bottom. I do not think that the bottom is in until there is seller exhaustion. Price is below the POC line of the volume profile. I will not be convinced of a bottom until some net accumulation begins. I see the earnings pop as giving a better entry for a short and call it a pullback correction of the trend down and a great point to take a short trade.
GShort
by AwesomeAvani
2
Top 3 Pullback Trading StrategiesAs traders, we all know the market can be unpredictable, but by understanding and utilising pullback trading strategies, we can take advantage of temporary price reversals to enter positions at more favourable prices. In this article, we’ll dive into the world of pullback trading, explain the concept of mean reversion, and look at how to use tools like the moving average indicator and Fibonacci retracements to identify potential pullback levels. What Is a Pullback? In the past, you might have seen stock traders discussing their plans to wait for a pullback to load up on shares and wondered, “but what is a stock pullback?” In fact, pullbacks occur in prices of all tradable assets, including commodities and forex trading pairs, such as EUR/USD and AUD/USD, not just in stock prices. A pullback refers to a temporary reversal in the price of an asset after a period of upward or downward movement. If you’ve ever heard of “correction” or “retracement,” these are just other terms used to describe pullbacks. It's where the price cools off slightly before continuing its overall trend, and it is often the result of profit-taking by traders and technical factors, like key areas of support and resistance. Why Do Pullback Trading Strategies Work? Trading pullbacks in trends plays into the notion that “the trend is your friend.” In other words, trading in the direction of the higher-timeframe trend will typically yield the best results. But why does this strategy work? The easiest way to think about it is in the context of “discount” and “premium” pricing. Discount and Premium Pricing Imagine you have a bullish trend, like the one in the example above. Here, traders run the risk of buying at one of the many highs that make up the trend, paying more for a single unit of an asset than is potentially necessary (paying a premium) and resulting in sub-optimal risk/reward. Given the premium pricing, the number of buyers will taper off until sellers take control and push prices lower. Conversely, pullbacks allow traders to get in once the price cools off, meaning they can enter at a discount. At this point, buying pressure will be at its strongest as many know these low prices often won’t last and that they can offer much better risk/reward ratios, maximising the profit for traders from the overall bull trend. Mean Reversion This concept relates to the idea of mean reversion, which states that prices tend to return to their average over time. By entering a position during a pullback, traders can buy an asset at a lower price, or at a discount, with the expectation that the price will eventually return to its average. Notice that in the chart above, for example, the retracements typically fall below the midpoint of the previous retracement and the 50-period moving average before continuing higher. Additionally, we can see that the further the price moves away from these two averages into areas of previous premium or discount, the more likely it is to reverse. As you’ll see, these ideas form the basis for several commonly used pullback trading strategies. Understanding how the concepts work, however, will help you develop your skills as an effective pullback trader and allow you to trade under a variety of market conditions. Using Pullback Strategies in Forex and Other Markets The following strategies can form the basis of a solid stock pullback strategy, but their uses aren’t limited to just stocks. You can use them while forex trading or in the commodities and crypto* markets. Just note that pullback trading will be most effective in trending markets and less so in ranges. To get the best understanding of how these strategies work, you can try applying them to live charts using the TickTrader platform. Strategy #1: Moving Average Pullback Strategy Using the principle of mean reversion, we can start putting it into practice with moving averages. Moving averages often provide ideal areas of dynamic support and resistance and are a versatile tool in any pullback trader’s arsenal. Requirements: You can use a simple moving average (SMA) or an exponential moving average (EMA), which gives more weight to recent prices. It may be a good idea to try experimenting with both to see which one you prefer. Traders often use a 21, 50, or 200-period moving average, so again, you can try experimenting to find the most suitable one for you. We’ll use a 50-period MA, expressed as MA(50). Entry: First, a trend will need to have been set in motion. Traders usually either set a limit order at the moving average or enter with a market order based on price action that supports their idea. Stop Loss: Stop losses are typically set above the high or below the low that originated the leg before the pullback, as seen in the example above. Given that these trends can last for a long time, you may trail your stop just above or below key swing highs and lows as the trend progresses. Take Profit: Some traders begin to take profits at the high or low that originated the retracement, denoted by “Potential Target” in the example. So, when entering during a bullish pullback in an overall bear trend, traders can use the low that started the retracement as their first target. Subsequent levels of support or resistance are also commonly used as profit targets. Strategy #2: Fibonacci Retracement Pullback Strategy Using Fibonacci retracements is also a common way to find entries in pullbacks. Recall that the price will often cross above or below 50% of the retracement. Sometimes, it’ll reverse to the key Fibonacci levels of 0.618 and 0.786 in a larger bull trend or 0.382 and 0.236 in a bear trend. Don’t forget that 0.5 itself is a Fibonacci level. Requirements: You just need the Fibonacci retracement tool that can be found in most charting software, like TickTrader. In a bullish trend, apply the first point to a swing low and the second to a swing high. Apply it to a swing high and low for a bear trend. Entry: Entries here can be adjusted to your preferred style of trading. Some traders will simply set a limit order at 0.5, while others will place them at 0.786 or 0.236 to maximise risk/reward. Alternatively, you can break up your order into three, setting limits at 0.5, 0.618, and 0.786 to cover all bases for a bullish trade or 0.5, 0.382, and 0.236 for a bearish one. Stop Loss: Like the Moving Average strategy, traders often put a stop loss above the high or low that originated the leg before the pullback. For instance, the second entry above would mean placing the stop at the 0.618 level of the Fibonacci retracement. You can also try putting stops above or below nearby engulfing candles for better risk/reward. Alternatively, you could choose to trail your stop below swing lows or above swing highs for bullish and bearish trades, respectively. Take Profit: Some traders will start taking profits at the nearest major swing points, while others use the 1.618 extension of the pullback to set their profit target. Strategy #3: Breakout Strategy Finally, in markets where the overwhelming trend is too strong to allow for a deeper pullback, you may try to trade the breakout. In a bullish breakout, for example, the price might quickly back up to test the resistance-turned-support before shooting higher. Note that some breakouts are merely false breaks designed to trap traders and force prices into a deeper retracement - just look at the significant highs in the first picture in this article. To counteract these traps, you can look for high volume on the movement that caused the break, as well as the close of the candle. Candlestick patterns, such as shooting stars and hammers, can typically signal false breaks. Entry: After a bullish breakout above a recent swing high on high volume, traders will usually set a limit order at or just above the high or wait for price action to confirm that the high is now acting as support before entering with a market order. Conversely, traders will enter in the same way for a bearish breakout but use swing lows instead, setting orders at or just below the low or looking for price action confirmation to enter. Stop Loss: Traders can choose to set stops below the range that the breakout occurred from or above or below an engulfing candle, like in the Fibonacci strategy. Take Profit: As with the two strategies mentioned, some will just trail their stops above or below key swing highs and lows to ride the long-term trend and maximise their profits. Others choose to use the most recent swing high or low to take partial profits before closing their position at a suitable level of risk/reward. Closing Thoughts Pullback trading can be an effective strategy for traders looking to ride trends. By taking advantage of the concepts of premium/discount pricing and mean reversion and using technical analysis tools like moving averages and Fibonacci retracements, traders can get involved at optimum points in the market before the trend continues. It’s also worth remembering that any pullback can signify a market reversal. Always be cautious and use these pullback strategies in conjunction with other forms of technical analysis before considering making a trade. Once you feel ready, you can try opening an FXOpen account to put your skills to the test. Happy trading! At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules, respectively. They are not available for trading by Retail clients. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
📉XAUUSD fake bullish scenario📈FOREXCOM:XAUUSD OANDA:XAUUSD Gold analytical series, Episode 10 Hello Traders, Gold can create a bullish view by starting a fake upward movement and continue the downward trend by falling below $1950 in the following days to the level of at least $1885. Optimum stop-loss for long positions: Under 1957$ Optimum stop-loss for short positions: above 2017$ Don't forget to risk-free your positions. Please share ideas and leave a comment, Let me know what's your idea. CrazyS✌
FOREXCOM:XAUUSDShort
by CrazyS
3
📈Ethereum pull back to the trend-line📉BINANCE:ETHUSDT COINBASE:ETHUSD Hey everyone, first take a look at my previous analysis and positions. Along with the analysis of Bitcoin, Ethereum can also continue its upward trend up to the 1854$ level. According to Ethereum's pullback pattern, the price can continue its downward trend until the level of 1694. If the price stays above the 1854$ level, Ethereum's upward trend will continue. Please share ideas and leave a comment let me know what's your idea. CrazyS✌
Short
by CrazyS
Pullback Buy in TGTXBiotech stocks can make huge moves, and this one is no exception. TGTX more than doubled in a month and is showing no signs of slowing down. Slower-trending, blue chip stocks tend to ride their 50-day moving average (red line on chart) on the way up. Stronger stocks tend to hold their 21-day moving average (blue line). But with high-flying honey badger stocks like TGTX, you are lucky to get a pullback to the 10-day (yellow line). TGTX touched its 10-day exponential moving average on Friday, making this the first real pullback buying opportunity since the initial surge. I would consider buying here with an 8-10% stop loss.
NASDAQ:TGTXLong
by rossgivens
Long Trade in IRDMIridium Communications is a telecom stock in a clear uptrend. Shares have more than doubled over the last 12 months with clear support at the 50-day moving average. The dashed white line on the chart highlights the area I have been watching - the HKEX:62 price level. This has been a key area of support and resistance and a likely place for IRDM buyers to step in and support the stock. The 50-day moving average is here as well which should give additional support. This is buyable here with a sell stop at $60.
NASDAQ:IRDMLong
by rossgivens
Intapp INTA Cloud Software Services Tech LONG As can be seen on the 2H Chart INTA is on pacing over a 350% annualized gain without any major pivots. The volume indicator shows a dramatic increase in volume realtive to the year prior. INTA is capturing alpha consistently in a hypergrowth mode as can be seen by reviewing the earnings beats quarter after quarter. This is clear and obvious entry with earnings coming on May 8th. I originally bought options last summer after the double bottom and have added a couple of weeks before each earnings . Price recently bounced down 10% from minor resistance representing a small pullback with space above in the runup for the earnings report. I see a potential return of 15% in 10 trading days or less and 75-100% for call options with expiration of 5/19/23 in consideration of the pullback described above and shown on the chart
NASDAQ:INTALong
by AwesomeAvani
WISH Continuation of Momentum LONGWISH had a great day to finish out this past trading week. On the 15-minute day, two highs are drawn as horizontal resistance using the high candles with the wicks as "tweezer tops" while the support is drawn as a green line at a pair of "tweezer bottoms" I see this as a bullish continuation play for next week. A stop loss is set below the support line at $8.30 with a buy order placed at $.05 above the current market. Targets are $.05 below each of the resistance lines with an approximate reward to risk of 15X. This is a volatile small cap with the typical high-risk and high-reward scenario. I will take call options at the strike $ 7.5 for expiration on 5/5 expecting a return on risk of at least 75% leveraging the expected return on a similar stock trade.
WLong
by AwesomeAvani
1
Pullback Buy in GBTC (Bitcoin ETF)Bitcoin had a painful 2022. But the digital currency turned bullish this year and is now marching higher. GBTC is an exchange traded fund that holds Bitcoin but trades like a stock. So regular investors can get exposure to crypto without the hassle of digital wallets or sketchy cryptocurrency brokers. The stock is currently wedging on decreased volume. This is the same pattern it showed back in February before a quick 50% surge higher. Volume is telling the story here again. High volume moves higher show accumulation while lower volume retracements indicate and absence of buyers. A buy was triggered on the move above 16.50. This pullback is giving trades a second chance to enter with the recent breakout area and 21-day EMA serving as support. My stop loss would be at 14.95 to risk just under 10% on the trade.
GLong
by rossgivens
1
Possible Reversal On GBPUSDHello folks, what do you think about GBPUSD? I am anticipating price to dig down heavily after the pullback (area of value) is complete. My analysis is based on two tfm: D1 and the 4hr tfm. * Open your chart on the D1 tfm, most recent candle went all the way up to our main area of value (Supply zone) and got rejected forming a clear pinbar candle pattern which give a reversal signal. * Same or similar pinbar candle pattern happen on the 4hr tfm. * On the 4hr chart, there a breakout on our trendline, and now we are only wait8ng patiently on a pullback and sell the market. Again, I can only trust my analysis, but one thing for sure... trading is a probability game and the market can do anything it like. Much love
Short
by ZakProFx
Top Pullback Trading StrategiesTop Pullback Trading Strategies In this article, we will be discussing some of the most effective pullback trading strategies that can assist forex traders in identifying ideal entry points that align with the current trend. These strategies enable traders to take advantage of short-term price retracements, allowing them to navigate the volatile currency market with greater ease and profitability. What is pullback trading? Pullback trading refers to the practice of capitalizing on temporary price retracements or surges within an existing uptrend or downtrend in the forex market. These fluctuations in price typically occur over a brief period and do not interrupt the prevailing trend. Traders can leverage pullbacks by entering positions when the currency pair's price approaches its support or resistance level, enabling them to profit from upward or downward market movements. Discover the Top Pullback Trading Strategies for Forex Traders Moving Average Strategy The Moving Average (MA) strategy is among the most widely used techniques for identifying pullbacks in an ongoing uptrend. This technical indicator calculates the average price of a currency pair over a specified timeframe and compares it with the present price to ascertain market behaviour. In an uptrend, when the current price of the currency pair is significantly below its average price, it suggests that a short-term dip is likely to occur and provides a signal to enter long positions. Conversely, in a downtrend, if the current price of the currency pair is significantly above its average price, it implies that a short-term hike is probable, indicating the need to enter short positions to profit from a subsequent market downturn. Trendline Strategy Trendlines play a crucial role in identifying the direction of a trend in forex. Connecting three or more high or low price levels creates an uptrend or downtrend trendline, respectively. When trading pullbacks with trendlines, traders look for higher high price levels followed by higher low price levels, indicating a temporary dip in an ongoing uptrend. Alternatively, traders can enter short positions with trendlines showing lower low price levels followed by higher low price levels, signaling a temporary hike in an ongoing downtrend. Traders can enter long or short positions with trendlines at the third, fourth, or fifth high or low price level, as these levels confirm the prevailing trend and signal the optimal entry point in the forex market. Breakout Strategy The Breakout strategy enables traders to enter the market immediately after currency pair prices reach their support or resistance level and subsequently move above or below it, respectively. Breakouts represent opposing movements to the prevailing trend, providing opportunities to enter the market during temporary reversals. In an uptrend, when the currency pair price briefly touches its support level and contracts, a breakout signals a pullback in the trend, providing a signal to enter long positions and benefit from rising prices. Conversely, in a downtrend, when the currency pair price briefly touches its resistance level and expands, a breakout signals a pullback in the trend, providing a signal to enter short positions and benefit from falling prices. Fibonacci Retracement Strategy The Fibonacci Retracement strategy determines the optimal levels for entering the market during an uptrend or downtrend. Using Fibonacci levels, traders can identify the ideal support and resistance levels, based on which they can decide to long or short the market. This strategy utilizes Fibonacci retracement levels, which indicate how much currency pair prices are retracing before continuing in the prevailing trend direction. During a downtrend, lower Fibonacci levels, such as 23.6% and 38.2%, suggest that the markets have not retraced significantly, enabling traders to identify the ideal resistance level (representing a temporary pullback hike) and signal short trades due to the expected continuation of the downtrend. Conversely, during an uptrend, higher Fibonacci levels, such as 61.8% or 78.6%, indicate that the markets have retraced extensively, helping to identify the ideal support level (representing a temporary pullback dip) and signal short trades due to the anticipated continuation of the uptrend. Additionally, during an uptrend, lower Fibonacci levels like 23.6% and 38.2% suggest that prices are approaching the resistance level, which may break above this level, signaling traders to place long orders and benefit from the ongoing rising markets. On the other hand, during a downtrend, higher Fibonacci levels like 61.8% or 78.6% indicate that prices are approaching the support level, which may fall below the support level, signaling traders to place short orders and benefit from the ongoing falling markets. Trade forex pullbacks and identify ideal entry prices In forex trading, pullbacks can help traders pinpoint the optimal entry points for both long and short trades. By identifying temporary dips or hikes in currency pair prices during an existing uptrend or downtrend, traders can take advantage of short-term trading opportunities without missing out on potential profits.
PEPPERSTONE:XAUUSDEducation
by FOREXN1
13