The TrendLine pullback formation
occurs when price breaks a trend line, and then retraces to test it.
Once price tests it, and reverses – we will enter the trade in the
direction of the breakout.
Time Frame 15 min or higher.
Currency pairs: any.
Step 1: Identifying a trend line
We identify a trend line – price stopping on one line for more than
2 times.
Step 2: Wait for price to break
the trend line
Step 3: Wait for price to retest
the trend line
Price re-tests the trend line when it
comes back to touch it.
Reversal is confirmed when price goes
above the high of the previous candle
(for long trades) or below the low of
the previous candle (for short trades).
Step 4: Placing Stop Loss
Stop Loss is placed:
• 5 pips below the lowest low of last
4 candles (for long trades)
• 5 pips above the highest high of
last 4 candles (for short trades)
Exiting the Trade
Trade is closed when the 20-period
moving average is no longer sloped = is flat.
A flat moving average signals that the
trend is weak and not likely continue.
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