Pullback in Trend

Join an existing trend after price dips back toward value, instead of chasing the top.

When to use it#

• A trend is clearly in place, but you missed the first signal.
• Price has stepped back toward the Trend Ribbon or the 50 EMA.
• You want a better entry than buying at a stretched high.

Settings#

Anything not listed stays on its default. See the Full Settings Reference for every option.

Step by step#

1. 1
   Confirm the trend

   Momentum Candles and the Trend Ribbon should share one color, and both higher timeframe rows should agree.
2. 2
   Wait for price to come back

   Look for price easing back into the ribbon or toward the 20 or 50 EMA, away from the outer Reversal Band.
3. 3
   Wait for a new signal in the trend's direction

   The pullback alone isn't a reason to enter. The signal confirms momentum is returning.
4. 4
   Enter with the plan on the label

   The pullback usually gives TP1 more room, because price starts further from the extreme.

Managing the trade#

• Take part at TP1 and let the stop sit at entry.
• If price pushes back into the outer band before TP2, think about taking more off.

When to skip it#

• The pullback breaks the last swing low (in an uptrend). That may be a turn, not a pullback.
• Momentum Candles turn the opposite color and stay there.

Common mistakes#

• Buying the pullback before any signal confirms it.
• Calling every dip a pullback during a range.

Related playbooks#