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How to Trade Pullbacks and “Predict” Market Turning Points 

Last Updated: August 10, 2022

By Rayner Teo

The advantage of trading pullback is…

You can buy low and sell high — giving you favourable risk to reward.
But…

It’s not as easy as it seems, right?

Because you’ll encounter scenarios like…

How do I know where the pullback will end?

How do I enter a pullback?

Do I wait for “confirmation”?

Where should I put my stop loss when trading pullback?

Yup, I feel you. These are legitimate questions that need to be answered.

So in today’s video, you’ll learn:

  • How to “predict” where the pullback will likely end
  • My 3 different techniques to trade pullbacks (#3 is my secret sauce)
  • How to set your stop loss when trading pullbacks — so you don’t get stopped out prematurely

Are you excited?

Then go watch it right now:

Once you’ve had a chance to watch, I’d love to know…

What are the things you look for when trading pullbacks?

Leave a comment below and let me know.

 

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  • Nice video. I am viewing your videos.
    Mr. Rayner I am having one doubt. If the stock is rising and index Nifty50 or sensex is falling then whether that stock to be traded (going long) or to wait. Pl. elaborate on this situation

    Thanks Mr. Ryner.

    Reply

    • Hi,

      Excuse me for my interference but I’d like to share my experience in this regard. The more filters you apply the more doubts you will have and less confidence will have to pull the trigger and take the trade. So having said this my personal believe (and experience) is that it is better off you disregard the underlying INDEX and trade your stock. Quite often good (leading) stocks outpace the index and if you miss the signal later on you are not going to take the trade anyway and will be bitter for missed opportunity.
      Regards

      Reply

    • Hey G.S.

      I don’t trade stocks so I can’t comment on this.

      But trading along the same direction of the index would result in a higher probability trade.

      Reply

  • Rayner;

    You are the Forex Trading Angele send from heaven to help struggling traders like me.. The knowledge you share is worth a thousands of dollars. There are so many scammers out there who call themself professional traders who sell package training that worth not even a penny but sell for nothing less than $500.00… If I knew you a year ago I would have saved a lot of money, Anyway keep posting those messages .. you will be double blessed… by mother nature..

    Reply

    • Hey Tom,

      Thank you for your kind words, I appreciate it.

      Don’t hesitate to let me know if you’ve got any questions, I’ll be glad to help.

      Reply

  • Hi Rayner,

    Pretty good summary. I just wanted to add two points I’ve found to be of value for my trading.
    First is that in order to assure I do not miss the movement I trade the pullback itself (based on the mentioned filter or confirmation criteria) and afterwards I look for second entry at the breakout. The stop/loss is moved accordingly.
    Second point is about confirmation. So my approach is the following – I use 10 and 30 exponential moving averages (on daily time frame). Whenever the price goes to the so called area of value I look for retracement. The candle that closes above the 10 EMA (in UP trend) is my trigger to put BUY order above the HIGH of that candle. The opposite is valid for DOWN trend – the candle that closes below 10 EMA triggers the sell ORDER which is positioned just below the LOW of previous candle.

    Regards,
    Emil

    Reply

  • Thanks again for sharing Rayner.

    Do you wait for confirmation on the close of the bar on higher time frame (e.g H4 or D1) before you place an entry on H1?

    Reply

  • Excellent/useful information, presented very clearly. Very helpful, for those that struggle with pullbacks for fear it might be a reversal.
    I’m curious Rayner, above and beyond those 3 methods to get into a pullback, do you like using Fibs?? I would imagine if the pullback fit your 3 methods you mentioned, say, a pullback to S/R and a 50% Fib level, than the confluence makes it even a higher probablility it might hold.

    Thank you again for this great info!

    Reply

  • Hello Reynor

    As usual, interesting and informative vid. I guess, what is being discussed in the comments is the individual perception of Indicators/Filters.

    My view, is, these are tools to alert me to potential trading opportunities, (not filters) but sniper sights to zero in on potential targets, NOT, to be slavishly followed without, they cut out the noise of the market, as a sniper would take into consideration many factors before/if pulling the trigger, “Windage, elevation, lighting conditions, distance, target size” this can be applied to trading.

    Reply

  • Good Day Sir Rayner,

    Thanks for this video.

    1 question. Where should i monitor my stop loss is it on the 1 hour or the 4 hour. I am using Moving average as my exit point if it is broken.

    Reply

  • Great Video Rayner

    I use a very similar method to your video.

    When price pullbacks to the potential setup “zone”, there must be at least 2 confluent factors before I consider the trade.

    The confluent factors being:
    1) Trendline
    2) Moving Avg
    3) Support or Resistance
    4) Fibonacci Retracement 50%

    If the confluence is present in the zone, I wait for a candlestick setup.
    Either a pin bar or engulfing pattern.
    I then set up my stop loss either below the candlestick pattern, Moving Avg , Trendline , Support/ Resistance.
    I take the most conservative options, as it gives the trade a bit of breathing space.
    My take profit area will be at the previous swing high/low point.
    If the risk/reward is 1:2 or greater, I take the trade.

    I really like your your approach using countertrend line breaks and lower time frames to enter trades. It looks as though there is defiantly more potential to increase your risk/reward ratio per trade using this method.

    Something I’m definitely going to look into and probably incorporate into my trading plan.

    Any thoughts Rayner?

    Reply

    • Hi Stuart

      Your plan sounds fine. But perhaps your stops might want to be at a level a distance away from structure.

      Too close and it can get triggered easily. Best!

      Reply

  • Wow!!! That’s simple and effective ..
    I have seen such pullbacks in stocks and commodities many times. Raynor you do amazing job of putting pieces together. Pl. keep sharing.
    -Marzi

    Reply

  • All your training videos are exceptionally good. I listened to many of them and have learned a great deal from you. Thank you Rayner

    Reply

  • Sir,I want to purchase pullback trading book,can i get this book soft copy first or Hard copy I think due to lockdown you can not ship this book to India.can i get this book soft copy first or after lockdown Hard copy

    Reply

  • Thank you for your amazing knowledge and your willingness to share to us.
    Thank you very very very much boss

    Reply
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