Price action and chart patterns
Pullback trading
A temporary move against the trend before it continues: in an uptrend, a dip that does not break the last higher low.
Why it works
Pullbacks give better prices and tighter stops than chasing. They let you join the trend where the risk is smallest.
How to use it
Identify the trend, wait for a pullback into value (an FVG, order block, EMA or Fibonacci zone) and enter when price turns back with the trend.
The typical mistake
Mistaking a reversal for a pullback: if the last higher low breaks, the uptrend is in question.
FAQ
What is Pullback in trading?
A temporary move against the trend before it continues: in an uptrend, a dip that does not break the last higher low.
How do you trade Pullback?
Identify the trend, wait for a pullback into value (an FVG, order block, EMA or Fibonacci zone) and enter when price turns back with the trend.