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Pullback trading method: how to pullback using ema.


Pullback trading method: how to pullback using ema.
Description:
Setup indicator;
Comparison with channels and bollinger bands;
Pullback and entry layer movements.
Enter two (2) Moving averages and select the following settings;
1. Moving average exponential 5 High
2. Moving average exponential 5 Low
Comparison to channels and Bollinger bands (20 period: deviation 2.0)
The concept is the same as channel buying in the lower channel and selling in the upper channel. I will but it differs in terms of when to buy and when to sell. Next look compared to the Bollinger band.


Pullback trading method: how to  pullback using ema.

The EMA 5 high and low are more similar to the bollinger band but different fromin terms of appearance.The EMA 5 high / low has a direct reflex with price movement while pricethe bollinger band will bloom and shrink at times.
Pullback trading method: how to  pullback using ema.
The pullback movement and the entry layer

One of the uses of this EMA 5 is for the entry layer of a trending movement or a rally trend.
The use of this EMA can also be associated with price action such as candlestick pattern (pin
bar / shooting star, evening and morning star / engulfing).
The things you need to master are the following;
Trends;
Price must be rejected in the lower channel for uptrend and upper channel for downtrend;
Price closed again on upper channel for pullback uptrend and lower channel for pullback downtrend.

Pullback trading method: how to  pullback using ema.

Pullback trading method: how to  pullback using ema.

Here I share how to identify trends and how to take advantage of these trends by making entries on pullback trends. I'm using the EMA50 for medium term trends in H1. For an uptrend, candlestick must be above EMA50 and for downtrend, candlestick must be below EMA50. In addition to the EMA50, the EMA200 is also compatible.Once the trend is identified, proceed with the understanding of candlestick and EMA5 high / low, entry point will be created if sufficient conditions.
Pullback trading method: how to  pullback using ema.


Based on the image we will create an entry based on the following two conditions;
1. Candle rejection is in the lower channel.
2. Candle closed at EMA 5 high as a sign of trend pullback.


Pullback trading method: how to  pullback using ema.
Entry layer
Once the market is pullback, you can open the entry layer in EMA 5 high for purchase on the uptrend and the EMA 5 low for downtrend.

Pullback trading method: how to  pullback using ema.

Pullback trading method: how to  pullback using ema.


Note that in one trend you are focusing on one entry only buy or sell only.
Pullback trading method: how to  pullback using ema.


Pullback trading method: how to pullback using ema. Reviewed by learn forex trading on November 15, 2019 Rating: 5

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