Trade With The Trend Using This Powerful Pullback Strategy

how do you trade in a trending Market do you just draw a trend line and if the market is trending you enter the trade do you use a 200 period EMA and enter when the price crosses above or below it the truth is there are a lot of ways to enter trades in a trending Market but in this video I'm gonna show you one of the best methods out there and that is by using a pullback strategy let's get into it now you may be thinking but what is a pullback well put simply a pullback is a short-term price movement in the opposite direction of the overall trend we all know that trending markets don't move in a straight line in an uptrend for example you'll see something like this a series of higher highs followed by a series of higher logs when the price moves from a higher height to a higher low this is a pullback and it's the optimum place to enter your trades in a bearish trend it's the opposite now at this point in time you may be thinking but how do I identify a pullback in the first place well the first method that we can use to identify a pool box is by drawing a trend line now as you can see here each time the market did a pullback it later reversed in the direction of the overall trend immediately after touching the trend line So based off of this you can say that each time the market creates a higher high or a lower high and comes back and touches the trend line that becomes a pullback the opposite is true of course for a bearish trend but identifying pullbacks this way has one major problem and you probably might have figured out already trend lines are very subjective I mean how do you even draw a trend line do you draw from the bottom of the wick and extend it to the right only touching the Wicks do you push it a little higher or a little lower what if the price breaks and closes below the trend line is that still considered a pullback there are a lot of questions to avoid them we're gonna use a trend filter indicator called Market bias this one by Professor X double click on it to access the settings panel on this tile tab you're gonna uncheck this first option and then click ok now the way this indicator Works to identify pullbacks is very simple in a bullish Trend the normal trench color is bright green like this one whenever the market does a pullback this trend ribbon changes color from bright green to dark green like it did right here this signifies a pullback in a bullish Trend in a bearish trend the normal Trend color is bright red during a pullback the trend ribbon will change color from bright red to dark red like it did right here so now you know how to identify pullbacks but how do you decide when to enter your trades well for starters you can use Candlestick patterns like an engulfing candle for example an engulfing candle is a candle of opposite direction relative to the previous candle and has a bigger body than the previous candle like right here you can see that the market did a pullback and we know this because the trend ribbon of the market bias indicator turned from bright green to dark green after the pullback the price created this engulfing candle and you could enter the trade right here now as you can see using ankle thin candles can be great but if you're like me and you hate the subjectivity that comes with looking at Candlestick patterns you might want to use an indicator an indicator called Williams percent range this one by this guy then you're gonna double click on it to access the settings panel on a style tab You're Gonna Change the upper band's value to -30 and the lower band's value to -70. then you're gonna change the upper band's color to red and change the display style to line then here you're going to change the lower bands color to Green and change the display style to line and then click ok the Williams percent range is a momentum based oscillator used to identify overbought and oversold conditions in the market this yellow line is the percent range oscillator and this blue line is simply a 13 period exponential moving average we're going to be using it as a buy sell entry signal alongside the market bias indicator which will be used for pullback confirmations as well as Trend identification when the percent range oscillator this yellow line crosses above the moving average this blue line and the cross happens below the negative 70 level that is a signal to buy but when the yellow line crosses below the blue line and the cross happens above the minus 30 level that is a signal to cell so how do we trade using this strategy well I'll tell you just after introducing the sponsor of this video henko trade if you're looking for a broker with some of the lowest commissions and spreads in the market then check out hanco trade I use them on a daily basis as you can see here this is my trading history I mainly sculpt gold and up here you can see that it's a live account for those of you that love High leverage hanker trade offers up to 500x leverage which basically means that my 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that happens yes this is a pullback lastly we want the percent range oscillator this yellow line to cross above the 13 period moving average this blue line and the cross should happen below the -70 level also at the time the crossover happens the trend ribbon of the market bias indicator should still be colored dark green this indicates that the market was oversold in an uptrend and the momentum is now shifting back to bullish if the crossover happens after the trend ribbon has already changed color to bright green God setup becomes invalid all our entry conditions are met on this candle so we're gonna enter a long trade the stop loss is gonna go below the most recent swing low and for the check profit we're gonna set it at 2.5 times the risk we let the trade run and take profit for short trades we're just gonna do the opposite first the trend ribbon of the market bias indicator should be colored bright red and the price should be trading below it this indicates a bearish trend second the price should do a pullback now a pullback in a downtrend is when the market comes back up and creates a higher high or a lower high in the trend ribbon changes color from bright red to dark red let's see if that happens here this is a pullback in a bearish trend lastly we want the percent range oscillator this yellow line to cross below the 13 period moving average this blue line and the cross should happen above the minus 30 level also at the time the crossover happens the trend ribbon should still be colored dark red this indicates that the market was overbought in a downtrend and the momentum is now shifting back to bearish if the crossover happens after the trend ribbon has already changed color to bright red that setup becomes invalid all our entry conditions are met on this candle so we're gonna enter a short trade this stop loss is going to go above the most recent swing High and the take profit is going to be set at 2.5 times the risk we let the trade run and it hits take profit now as you can see this is a simple yet powerful pullback strategy that can be applied on any trading security and to answer your questions yes the strategy can be applied on any time frame that you like to trade if you are planning on using this strategy remember to do extensive back testing and forward testing and customize it to your liking so you can have as much confidence as possible when trading with it that's been it for this video hope you found some value if you did hit the like button below and you consider subscribing to stay tuned thanks for watching and I'll see you guys next time

Channel: PineTrades

Views: 5,358

Keywords: scalping trading strategy, forex trading, trading forex, forex, crypto trading, trading strategy, investing, day trading, swing trading, profitable trading strategy, best scalping trading strategy, forex scalping strategy, best scalping strategy forex, Profitable Buy Sell Indicator, buy sell indicator tradingview, hankotrade, nicolas darvas, darvas box, darvas box trading strategy

Id: coiOSMR7B4M

Length: 9min 21sec (561 seconds)

Published: Wed Mar 15 2023