OANDA:EURUSD   Euro/Dólar estadounidense
Hello everyone!
Today I want to discuss pullback trading with you.
You may have come across such a situation when you were waiting for a pullback to enter the market, but the price did not stop and went further.
In the place where you expected the end of the rollback, there was a breakdown, and you did not receive an entry point.
Something went wrong?

Trend is our friend!
The most famous and most important rule.
At the beginning of any market analysis there must be a trend definition.
If you want to trade pullbacks correctly, you must determine the direction of the trend.
If you are trading on the hourly chart, you must determine the direction of the trend on the daily chart and wait for the right situation on your chart, while trading, of course, with the trend.
There must be a trend in the market in order to trade on a pullback.

Trend types
Trends are different, of different strengths.

They can be divided into three types:
1. When the price bounces off the 20MA and stays higher, we say the market is in a STRONG TREND.
2. The price bounces and stays above the 50MA - GENERAL TREND.
3. The price reaches and bounces from the 200MA - WEAK TREND.
Knowing these types of trend and being able to understand the movement will help us enter the market at the right point.

Point of entry
The entry points will be the areas around the MA lines.
Here it is worth focusing on the word REGION.
You must understand that the price can go below or above the MA and only then turn around, be prepared for this.

Entry on a strong trend
In a strong trend, the price stays above the 20MA.
At the same time, you need to remember that with a strong trend, rollbacks are not deep.
This means that finding the entry point will not be so easy.
But you can open a position after the breakdown of the last maximum.

Entry on a regular trend
In a normal trend, the price makes deeper pullbacks.
The price is testing the 50MA, while the previous resistance may become support.
These are the moments we are looking for to enter.
In such zones, we will wait for a price reversal candlestick pattern to enter.

Entry on a weak trend
In a weak trend, pullbacks are even deeper than in a normal trend.
The price makes a strong pullback, reaching 200MA.
When the price of the zone is reached, we are waiting for confirmation - a candlestick formation.

Closing positions
Closing a position is just as important as opening it.
The main signals for closing will be the price movement beyond the MA line.
For example, in a market with a strong trend, the price may go a little lower than 20MA, which is not critical yet, but it makes you be more careful.
It is worth paying attention to the support level, which should not be broken by the price, but if the price still breaks through the level, then the position must be closed.
With a weak trend, it is worth remembering that pullbacks can be deeper and the price will go beyond 50MA.
You must be prepared for this.
Watch for a support level that should not be broken.
With a weak trend, holding a position is the most difficult.
The price will make strong pullbacks, which will eventually force you to close the trade.

Sometimes the price, having reached the desired zone, does not bounce right away.
Consolidation begins and if you see such a situation, the best entry option would be to exit the consolidation zone.
You must have a plan for every occasion.

Trading with the trend is the most profitable business.
You must be able to identify the trend on the higher timeframe and, importantly, be able to wait for the right situation on your timeframe.
The market cannot be predicted with 100% certainty, so use stops and keep an eye on support and resistance levels.

Good luck!

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩

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