The advantage of trading pullback is…
You can buy low and sell high — giving you favourable risk to reward.
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.
Great idea to trade.
Share more your skill to refresh our knowledge.
Thanks Rayner Teo
You’re welcome, Willyam 🙂
very useful as always.
Glad to hear that, Lesego.
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.
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.
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.
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..
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.
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.
Thank you for sharing. It makes a lot of sense!
Thanks for sharing, Rayner.
You’re welcome, Shlomi. 🙂
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?
My confirmation comes from the break of lower structure on lower timeframe, e.g. a lower high and low before shorting.
Rayner, Thank you so much for sharing your nice experienced knowledge which is very helpful to us.
Don’t mention it. Glad to be of help!
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!
I don’t use Fibs, but sometimes I do use trendlines if it makes sense.
can the trading pullbacksvideo be downloaded?
Don’t mention it Jas!
Interesting stuff thanks mate!
You’re welcome Ben!
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.
That’s a good analogy!
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.
You would trail it on your entry timeframe.
If you enter on daily, then manage it on daily.
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:
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?
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!
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.
I’m glad to hear that, Marzi.
Don’t hesitate to let me know if there’s anything, I’ll be glad to help.
Raymond can you please send me replay from webinar ,yestrday from mr burns thanks mike
I’ve sent it out to those who registered for the event.
Hello Rayner But Where to book profits I am a bit confused.
These post will help with your exits…
Good idea. It’s great
Great video, Rayner! Thanks for sharing.
You’re welcome, George!
Rayner,thank for ur sharing this video.It’s useful for me
I’m glad to hear that, Alan.
Brilliant thank you
You’re welcome Mzi!
Thanks again, Rayner
All your training videos are exceptionally good. I listened to many of them and have learned a great deal from you. Thank you Rayner
Awesome to hear that, Josef!
In your final comments you said “this is not an exact trading strategy”. What is needed to make it exact?
A better question is how do you develop a trading plan?
Here’s how… https://www.tradingwithrayner.com/profitable-trader/
nice value addition by this article, great Rayner
Wow!it’s great for traders thank u rayno u r genieus.
Glad to help, cheers.
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
The PSTS is being shipped in a hard copy.
Sir, very glad that you’ve shared immense knowledge, iam very much thankful to you sir, great..!
You are most welcome!
Thank you for your amazing knowledge and your willingness to share to us.
Thank you very very very much boss
You are welcome, Ibrahim!
You are welcome, Victor!