#Pullback
- Market always goes in cyclic
- A pullback is a price movement that moves in the opposite direction of the trend but it is only temporarily price movement before it resumes back into the main market direction.
- it can be refered as Retracements or dip or Corrections.
- Market always goes in cyclic
- A pullback is a price movement that moves in the opposite direction of the trend but it is only temporarily price movement before it resumes back into the main market direction.
- it can be refered as Retracements or dip or Corrections.
- The temporary countertrend movement resumes in the main market direction later and it does so by breaking beyond the recent price extreme.
- If price does not go beyond the recent extreme, then the pullback could reverse, or it could consolidate.
- If price does not go beyond the recent extreme, then the pullback could reverse, or it could consolidate.
If price does not go beyond the recent extreme, then the pullback could reverse, or it could consolidate. 
- A simple pullback always moves in three legs. Using the diagram above, in an uptrend, AB is the first leg where price is moving towards the trend.
- This is followed by the second leg (BC) and the cycle is completed as soon as the final leg (CD) moves beyond B.
- This is followed by the second leg (BC) and the cycle is completed as soon as the final leg (CD) moves beyond B.
- A pullback is only represented by BC. However, for the sake of completeness, a pullback (BC) must remain between A and B and it must include CD where D moves beyond B.
- If not, that would be considered a failed pullback
- If not, that would be considered a failed pullback
Pullbacks can considered by 2 types
1. Single bar pullback
2. Multi bar pullback.
Single bar pullback:
- very short pullback and quick.
- The next bar(after pullback bar) is moved above the previous bar.
- This is a valid pullback even though the ABCD pattern is not Obvious
1. Single bar pullback
2. Multi bar pullback.
Single bar pullback:
- very short pullback and quick.
- The next bar(after pullback bar) is moved above the previous bar.
- This is a valid pullback even though the ABCD pattern is not Obvious
2. Multi bar pullback
- There will be multiple bars between B and C points.
- Pullback is valid only when C breaks high of B point. Else it should be considered as failed pullback.
- A successful pullback may seen as below.
- There will be multiple bars between B and C points.
- Pullback is valid only when C breaks high of B point. Else it should be considered as failed pullback.
- A successful pullback may seen as below.
#pullbacks
- A pullback can be shallow or deep, and it can be fast or slow. While the depth and speed of the pullback are independent of each other.
- They are influenced by profit booking or market drivers.
- A pullback can be shallow or deep, and it can be fast or slow. While the depth and speed of the pullback are independent of each other.
- They are influenced by profit booking or market drivers.
- The market always make pullbacks in all timeframes, any conditions (bullish our bearish) and any direction ( upward pullback or downward pullback)
- understanding the pullbacks can give u high probable trades.
- understanding the pullbacks can give u high probable trades.
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