📊 Price Action · Pullback
The pullback strategy
In an established trend, enter on the first pullback that respects a key moving average or Fibonacci level. Skip the initial impulse; ride the confirmed continuation.
Setup
- Chart: 1-hour or daily; overlay EMA 20 and 50 for trend context
- Confirm trend: EMAs cleanly separated, price above both (up) or below both (down)
- Identify the impulse move you missed — the pullback strategy waits for the retracement to enter
Entry
Long: after an impulse up, wait for a 3-5 bar pullback to the EMA 20 or 50 (whichever is closer). Enter on the first bullish candle that resumes the trend direction. Short: mirror.
Exit
Target = 1× the impulse length projected from the pullback low. Trail on breaks of subsequent pullback pivots.
Stop-loss
Below the pullback low (long) or above the pullback high (short) by a few ticks.
When it works
- Clean trending regime with well-behaved pullbacks
- First pullback after a fresh impulse — subsequent pullbacks become less reliable
- Volume dries up during the pullback and returns on the resumption candle
When it fails
- Sideways regime — every counter-move looks like a pullback but there's no trend to resume
- Very deep pullbacks (past both EMAs) — trend is weakening
- Late in the trend — 4th or 5th pullback often marks exhaustion
General trading rules that apply
Regardless of the specific setup, these apply to every strategy on this site:
- Never risk more than 2% of your account on a single trade
- Place a hard stop-loss before entering — no exceptions
- Journal every trade: setup, reason, outcome, one lesson
- After two consecutive losses, stop for the session
- Backtest and paper-trade for a month before deploying real capital
Every strategy here is part of our in-house catalogue, written and calibrated for Indian markets. Past behavior does not guarantee future results. Charts run against 2-year Nifty data — actual results in your account will vary. Backtest, paper-trade, and size responsibly before risking real capital.