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Topic: How to Trade the First Pullback (Read 114 times)

full member
Activity: 462
Merit: 101
BitcoinSN - The Real Bitcoin!!!
January 29, 2018, 02:09:38 PM
#2
Market price never moves in a straight line, this is the truth. In fact, it is continuously cycling up and down. Each time price moves lower, buyers come into market as price becomes cheaper. On the other side, when price moves higher, sellers start to close their positions as they take profit. Some buyers who panic because prices are falling, they close their positions very quickly, so there are always reasons to cause prices to move up and down. An interesting fact that you must be aware of, is that it is difficult to predict how far price moves away before it is pulled towards the mean again.

https://aix.trade/2018/01/29/trade-first-pullback/

Yes, you are right the market moves in trend and during the trend is in play you should be waiting for the pullback to takes place after each new top is been made and even I used to predict the top and bottom by this way. I understand the top and bottom formation with very much clear and positive approach. For identifying and trading the pullback I make use of the Dow theory where the trend changing pattern occurs and I easily predict the pull back and I trade according to my strategy. You just need to follow some trend following strategy for trading the pullback nothing else is required.
newbie
Activity: 89
Merit: 0
January 29, 2018, 12:07:20 PM
#1
Market price never moves in a straight line, this is the truth. In fact, it is continuously cycling up and down. Each time price moves lower, buyers come into market as price becomes cheaper. On the other side, when price moves higher, sellers start to close their positions as they take profit. Some buyers who panic because prices are falling, they close their positions very quickly, so there are always reasons to cause prices to move up and down. An interesting fact that you must be aware of, is that it is difficult to predict how far price moves away before it is pulled towards the mean again.

https://aix.trade/2018/01/29/trade-first-pullback/
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