Trend and range trading · Lesson 18
Pullbacks in a trend
Movement against a trend can be ordinary fluctuation or the start of structural damage.
A pullback is a temporary move against the prevailing trend. Rather than chasing an extended move, traders often wait to see whether price pulls back into a relevant prior level or value area and then shows evidence of trend continuation. The setup is invalid if the pullback damages the structure that defined the trend, so a pullback entry still requires a specific invalidation.
Imagine a pullback holds a meaningful prior swing, then compare one that breaks it and fails to recover. Both move against the trend, but their implications differ.
Describe a historical pullback and the swing that gives it context. Explain what evidence would change your interpretation.
Next in this series: Recognising a range.
#TradingEducation #PriceAction #RiskManagement #TradingTurtle
Pullbacks in a trend
Movement against a trend can be ordinary fluctuation or the start of structural damage.
A pullback is a temporary move against the prevailing trend. Rather than chasing an extended move, traders often wait to see whether price pulls back into a relevant prior level or value area and then shows evidence of trend continuation. The setup is invalid if the pullback damages the structure that defined the trend, so a pullback entry still requires a specific invalidation.
Imagine a pullback holds a meaningful prior swing, then compare one that breaks it and fails to recover. Both move against the trend, but their implications differ.
Describe a historical pullback and the swing that gives it context. Explain what evidence would change your interpretation.
Next in this series: Recognising a range.
#TradingEducation #PriceAction #RiskManagement #TradingTurtle
