Hey hey: what's up my friends so in today's training, it's all about pullback trading, my friend! So after you complete today's training right, you will learn how to spot trading opportunities like this right. Where you can see the market makes a pullback over here right, get long right and then right to move up higher. So specifically right today, we will also talk about right number, one right: what is pullback trading and how does it work then? We'll talk about the first pullback trading setup or how do you, trade, the first pullback setup now i'll share with you? The break and retest trading setup then followed by the false break trading setup. So these are three different types of pullback trading: setups that you can use right to profit in bull and bear markets and along the way, i'll share with you a ton of charts and examples.

So you can master pullback trading fast. Does it sounds good? Then? Let's get started okay, so what is pullback trading and how does it work? So let me explain: pullback is in essence, right, short-term weakness in an existing trend. So let me give you an example: let's say the market is in an uptrend right, like price goes up, makes a pullback goes up, makes a pullback goes up, makes a pullback, so this portion here is what we call a pullback. This is a pullback.

This is a pullback, some people might call it retracement, they pretty much mean the same thing, so we can see that a pullback is pretty much a move right against the existing trend, so likewise in the downtrend, if the market is trending down lower. This is what we call a pullback here. Market goes down lower, it makes a pullback. This is a pullback okay.

So now that you have understand right what a pullback is, you might be thinking about right now. This is some basic, simple stuff and that's true right and it's so simple and basic, then why most traders right still feel right when they trade pullback right, that's because they probably face you know one of this problem. So let me give you an example right. So let's say the market is: let's say it's in a range it goes up, comes down, goes up, comes down, breaks out of the range most traders know right, okay, don't buy, don't chase the market, wait for the pullback, so the market makes a pullback over here.

Okay, so they thought. Okay. Maybe this is the end of the pullback market - is going up higher, but guess what market retrace even deeper right and then they get stopped out for a loss right as their pullback becomes even a deeper pullback? Okay. So how do you kind of, like you know, fix this problem? Well, the answer is very simple.

Is that pullback trading right is that there are many variations to it, so you have to understand the different type of trading setups right when you are trading a pullback, and this is what today's training is all about. So, let's move on move on and understand the first type of trading setup. Now the first pullback trading setup that i want to teach you is called the break and re-test right. So first, what to look for right? The first thing to look for is for the price to re-test previous resistance, which could become support.

That's the first thing to look for second thing to look for is to: when do you enter right? You can enter after a bullish price rejection. I know all this text, so it doesn't really make much sense. So let me give you uh uh illustration right. So, for example, let's say the market is in an uptrend okay, then what you're looking for is for the price to re-test previous resistance, which could become support or re-test the previous swing high.

So this one here is the previous swing. High look for the price to come down and re-test it. So now the price has re-tested this previous swing height. At this point right, you have no idea if the market will continue down lower where the pullback gets even deeper or reversed from there.

So this is why we can look at clues at the market to give us some idea that hey the buyers are stepping in and about to push the price higher. So in this case, you can look for something like a bullish. Price rejection could be a hammer. It could be a bullish, engulfing pattern right, let's say a hammer looks something like this: okay, okay, this hammer, you can see this long wig.

This tells you that the uh buyers are stepping in right and push trying to push the price higher. And finally, you know closing near the highs of this particular day or time frame. So when you see this right, this is what we call a break and re-test the prices. You know break out above resistance and re-test now the previous resistance, which could become support in this case it's a breakout of the swing high and then you re-test it as support and likewise in the downtrend.

It's just simply the inverse okay. So let me share with you a few examples so over here you can see over here. This is, let's say this is the highs. This is resistance, okay notice, how the price we test resistance, resistance resistance.

Then it finally broke out of resistance. So now, at this point you know better than to chase the market. So what you do you wait for the price right to give you a valid trading setup? In this case, you can use the break and re-test notice how the price break out of resistance and then re-test right, where previous resistance, resistance resistance, which could become support. Again, we have no idea, you know whether it will become support or not.

So this is why we look at the bullish price rejection and we look at candlestick patterns. Try to tell me you know: hey buyers are stepping in right and you're about to take the price higher. So, in this case, right, what we got is a bullish, engulfing pattern notice how this green candle over here, this red candle - you know it's bearish, the price closed lower for the day. This is the daily timeframe.

By the way, then, the next candle the market actually get down lower right, but somehow the buyers they found the strain right. The conviction right the muscles right and push right, the price up higher, closing near the highs of the day. In fact, the the previous day losses has been pretty much uh overcome right by this big bullish candle. So the market is closed, bullishly closing higher for the day right.

So that is a sign right here. You know, buyers are stepping in this candle over. Here is what we call the bullish engulfing pattern. Buyers are stepping in you can look to enter on the next day's open right and to write the move up higher.

So this is an example of the break and re-test right. Let me give you another example of the break and re-test, so this one over here again same thing right, you look over here. You can see this over here. Market right broke out of this area of resistance price breaks.

Out again, you know better than to chase at this high over here wait for the pullback again, i just taught you at the break and re-test market re-test right this previous resistance resistance, which could become support right. So in this case again, we have no idea whether the price will continue lower from there. So this is why we look for a bullish price rejection. In this case, we got another huge bullish, looking candle right, where the price reversed down lower from the from the lows of here of here.

The buyer stepped in and pushed the price closing right near the highest of today. So when you look at this big fat right bullish, strong candle, you can, then you know, tell yourself: hey, you know uh, it seems like you know. Buyers are stepping in. I can look to enter right on the next uh kendall opens when this kick enter.

The next candle open and to see if the price you know continues further in your favor. So all this all these charts, i share with you they're all cherry-picked right, you're, not gon na have wieners all the way right when you're trading stocks, fx or whatsoever you'll still face losses along the way. So please all right, you know, manage your expectations yeah. So moving on right, you might be thinking but reyna.

What, if right, you know it looks simple right. Let's say: price breaks out of the highs over here right. Look for a re-test of this uh. You know previous resistance that could become support.

But what, if rainer, you know the price doesn't get to that level? Sometimes the shadow, the pullback is a bit shallow and the price continues up higher. That's true as well, so this is why i'm going to share with you the next trading setup. Okay. The next example that i want to share with you, rather the next setup that i want to share with you is called the first, the first pullback okay.

So here's what to look for you. First, you're looking for the 20 period, moving average to catch up with the price, so after the price has breakout, let's say break out of the range you're, then looking for the 20 period, moving average to catch up with the price to catch up with the the Low of the candle so i'll show you shortly what this means then you're looking for the price right to then break above the swing high right to serve as an entry trigger to tell you that it's time to get on board the trade. So let me just give you a quick illustration, so, let's say the market this time around. Let's say it's in a range: okay, it goes up, comes down, goes up, comes down finally breakout.

So at this point, many of you know that you're familiar right can look for the break and re-test the re-test of this previous resistance resistance, which could become support, but what, if the price, doesn't pull back to that level? Why just pull back to this level over here right and then it continues up higher from there? How do you time your entry? So this is where you can. You know overlay with the 20 period moving average on your chart to tell you that hey, you know the pullback is uh getting ready to to uh, or rather the marketer has digested the recent uh pullback move right. It's getting ready to make the next move higher. So what you can do is just overlay the 20 period moving average on your chart, you're waiting for the low of the pullback right to touch the 20 period moving average.

This is critical. This is really what i look for to tell me that you know hey. It's time to to trade the breakout of this swing high in state right. So when the 20 period moving average has caught up with the low of the pullback the low of the candle, i would just place a buy.

Stop order above this highs, or i came away for a break and close above the high to you know, enter a long trade. So let me share with you uh what this looks like on the chart. So you can see that this chart over here market is pretty much obviously in the range right and at this area of our resistance right, you can see test it once twice three times four times, then. Finally, price breaks out of resistance.

So again, if you were to wait for the break and re-test to re-test this previous area of resistance at 120 250, you might not get filled. But if you wait for, let's say the first pullback right, you still have an opportunity to get on board this trade. So you can see over here. I want to point out to use the 20 period moving average, which is the market in this uh.

This red line over here notice how the price right has, or rather the 20 period moving average has to reach right in the low of the pullback right has touched the low of all this candle tested once over. Here, that's the twice. This is a good sign right. This tells you that hey, you know, despite uh touching the 20 period moving average, it fails to break below it.

So this tells me that there are buyers willing to buy at this lows at this lows and then this lows over here. So this is a sign of strength as the 20 period moving average is kind of like supporting these higher prices right. It's you know, storing potential energy right to make. You know the next wave up higher.

So this to me and this uh consolidation that you see over here is like the market sign of store, storing energy right before it makes the breakout higher right. So at this point right, when you see this pattern, when you see the 20 period, moving average has caught up with uh with the low of the pullback has caught up with the low of the candle right, you can look to enter right if the price breaks Above this swing high, so in this case right either place a buy, stop order above this swing high to get long or you can wait for a break and close above the highs to get long, both approach. I think it's perfectly fine, so you got to kind of, like you know, see which method right you you prefer right. You prefer to just place a buy, stop order, or would you rather wait for a break and close above it? Okay, another example over here.

You can see - let me just highlight over here. This is the area of resistance. Okay, so again many traders know that the price hey breaks out right, but if you wait for a break and re-test, it never come right. If you want x never come right, but instead what you can do is again right overlap the 20 period moving average right to see.

You know how the price is reacting to it. So you overlap the 20 period. Moving average see how the low of the pullback has touched, the 20 period moving average notice. The consolidation that has occurred over here this tells you right from a price action perspective - is that the market is consolidating storing energy to make the next breakout higher okay.

So, in this case, uh, you have a valid trading setup as the price break and close above the highs of this uh. This uh, this trend continuation pattern and you can look to get long on this trade. So this is what the first pullback is all about. Now, at this point you might be thinking reina, but what, if right, the first pullback the range is, is so huge right where there's no logical place to place a stop.

So let's say the market is in the range okay. Then it breaks out right then it comes back here. Then it goes back up higher. You can buy this breakout over here right, but you, if you were to buy this breakout right, you realize that your stop-loss right has to go a distance below this low somewhere about here.

You can see that the stop-loss is pretty darn white right. If this, this consolidation, this portion here of the consolidation, is very white, your stop loss is going to be very wide as well, so that kind of, like you know, make the risk to reward on this trade, not very favorable. So what else can you do right? So this is where you can uh look for. Another trading setup is what i call the false break trading setup and by the way, if you want to learn, uh pullback trading right, or rather a pullback trading system that has generated about 325 over the last 22 years, i'll be hosting a free, live event right I'll put the link in the description you can sign up for it, but for now, let's move on now.

The third trading setup that i want to share with you is what i call the false break setup right. So this is another variation of the pullback trading setup. So what to look for number one, the price re-test, the nearest swing low or the nearest area of support? Next right, you will enter right after a bullish price rejection. So you can look something like this.

Let's say the market uh goes up higher right in the trend. Okay and then it makes a pretty deep pullback. Okay, at this point at this point of the pullback, you don't want to be buying. Let's say if the price continues up higher.

Okay, you don't be buying when the price breaks out of the high, because you can think you can imagine right. Your stop-loss will probably be somewhere from here all the way down here. It's a very wide stop-loss right who wants that, so what it can do instead is to look for the false brake setup, which looks something like this. Let's say market trending up higher makes a deep pullback.

You can look for a false break, set up right near this swing. Low is the nearest swing. Low, look for a bullish price rejection could be something like a hammer and then enter on the next candle open. Your stop loss this time now is much tighter notice.

It can be just from here to somewhere here, so you can see the distance of your stop-loss so much tighter sweet, alright. So let's have a look at a few charting examples here. Shall we first one is a net right cloudflare you can see over here. The price right is in an uptrend and again as the price breaks.

Let's say it breaks above this high. So again, i don't think you know many of you would want to be buying at this heist and then have your stop-loss. Let's say: 104, it's a very wide stop-loss. So fortunately a few candles back right.

You can see that there was a valid trading setup, a valid false break, set up right notice over here. You have this candle right, showing you a bullish price rejection in the form of a hammer. You can look to enter on the next candle open, which is here your stop loss. Let's say a distance below this low somewhere about here you can see your stop.

Loss will be from here all the way down to here. It's a much tighter stop-loss. Okay. So you can see uh this false break setup right offers you a more favorable risk to reward on your trade.

Another example. This one here is a goal. Okay, so we can see that it doesn't just apply to the stock markets. You can use it for commodities.

You know fx as well so goal right again if the price - let's say it, goes up higher, you don't want to be buying when it breaks above this high. It's right not that you can't you can right, but again you used to be prepared to use a wide, stop loss and i think most traders just don't want that. So what you can do is again, fortunately, a few candles back. You can see that this market actually had a false break, set up right notice how this candle this particular candle, which is, i would say, close to a a hammer, but instead it's actually closed lower.

For the day slightly. You have this long, lower till signaling price rejection. So at one point in time the price was actually trading near this lows before the buyers took back control and pushed the price higher and closed right at this price point. So you can see that you know the market failed to break out lower and it fails to break up lower.

It probably means that it's likely to go up higher and on top of it we are, you know, trading also in the direction of the trend. So what it can do is again enter on the next candle open. So next candle open is over here. Okay, your stop-loss can just go a distance below this low somewhere here and, at this point notice how much tighter right your stop-loss is compared to buying at this size and then having the same level of stop-loss.

Your stop-loss is going to be so much wider, so at this point i've shared with you the three different types of pullback trading, setups. Next right, i'll share with you uh how you can actually use this uh strategy, strategies and techniques that you've just learned right and you know, use it to trade the markets in real time. I can't do this in real time. I'm going to kind of like show you uh setups that have not occurred yet right and show walk you through my top processor.

You can actually use this framework. This tools, these strategies right and you use it to you - know trade on your own right in the live markets, but first right a word of warning right. I will not be you know, responsible for any profits or loss right that you incur from you know, using the strategies techniques that i'm about to share with you. So please do your own.

Due diligence go and validate test the concepts that i'm sharing with you right before you risk any real money cool right. Then, let's get started. So let me walk you through this chart right and share with you my thought process right to how we can trade, the pullback right, using the strategies that i've just shared with you. So all you need to remember is just these three things.

These three words b. F, f right, so bff, i think y'all can, you know, relate to these three words bff right. So what does bff stand for break and re-test the first pullback and the false break, so this is usually should be at the top of your mind right whenever you're. Looking to trade uh pullbacks in the market, so let me walk you through this, this particular scenario.

So what i'm seeing over here? This is the dollar against the chinese union. This is the daily time frame, i'm seeing a potential inverse head and shoulders pattern over here, and this is demarked by this. I would say this neckline this area of resistance over here, okay, so the first setup that i can think of is if the market, let's say it, breaks out and i didn't manage to catch the breakout. What i could possibly do is, let's say the market breaks out higher.

I didn't catch. The breakup no worries because remember bff. First, one is the break and re-test look for break and re-test right at this previous resistance resistance resistance which could become support. So what i'll look for is a break and re-test looking for a bullish price rejection, maybe in the form of like a hammer, a bullish, engulfing pattern, etc.

So that's kind of the first thing i look for if this doesn't happen right then possibly maybe the market didn't pull back deep enough. If that's the case, then i will look for a first pullback setup. So again, let me just redraw the level, so i'm looking for a first pullback. In this case.

Let's say the market breaks out higher, i'm looking for first pullback. This looks something like a blue flag pattern. I like to overlay also with the 20 period, moving average right to make sure that the the low of the pullback right has. You know, touch this 20 period moving average before i look to buy the breakout of this heist.

So now, if the let's say the 20 period, moving average has caught up with the low of the pullback right, i will look to buy the break of this high. So if the market goes up higher breaks above this heist, i'm looking to get long. So this is another technique that i can use to catch the breakout now, what if i don't get a first pullback? What if the first pullback is uh deeper than i expect right. So, let's say the market breaks out higher.

It makes a pretty deep, pullback right, but not quite re-testing, this previous resistance, which could become support right and then it rarely supplies at this point, i'm not too inclined to buy the break of this high. So what i could do is i wait for a false break to wait for the price to re-test down lower a false break of this loss. Give me again a bullish price. Rejection could be something like a hammer right and then i look to get long.

So these are usually, i was in my top process right when i'm trading uh pullbacks in the market it can be applied to when the market is like in a range like this between these highs and this lows or it could be applied when the market is Currently, trending up higher as well. So let me walk you through one more example, all right, so this one you can see this market is already trending up higher. So again, my top process similar right. So what i can do is again over here at this heist.

I could look for a bff right, a break and re-test of this area of resistance resistance resistance which could become support. That's the first thing. Alternatively, i at this point you can actually see that there's actually kind of like a first pullback - that's being formed over here, because if you look at this, this was prior to it. It was like a resistance resistance, resistance right, then previous resistance, which became support, and then the price kind of like now is like consolidating right forming in, like an ascending triangle, pattern right uh.

So if you look at this like this, is this whole portion here is kind of like the first pullback right after this breakout over here. So again, you can look to trade, the break up of this ascending triangle. This was classified under the first pullback. This is the highs.

This is the higher lows into resistance. If the price breaks and close above this highs again can look to get long, that's the other option right, first pullback. Otherwise, right you can also look for a false break set up. Where might the false break set up b, so the false break could possibly come into one of these two levels.

This lows, or this lows over here so i'll, be paying attention to see how the price reacts at this to level. So hopefully, by now you can understand how the bff right uh technique works. So i look for the break and re-test. You can also look for the false brake setup or the first pullback i mean uh i mean sometimes the sequence might not be.

I usually break and re-test the first pullback and then the false break. Usually you know uh in this manner, but sometimes they can. You know be jumbled up right, so it really depends on how the market price section unfold itself and by the way, rather, if you've enjoyed this training, and you want to learn more about pullback trading right. You can join me for this upcoming webinar, where i'll be sharing with you, a pullback trading system that has generated about 325 right over the last 22 years and also in this live trading.

Webinar right we'll cover a few other things like you know, uh how to generate consistent profits right even during a financial crisis or recession, how to grow your account to seven figures and beyond. Even if you have a small starting capital and much more so just go down to this link i'll put somewhere below this video sign up for it right and uh i'll see you soon and again, don't worry if you know right now. The next event is in may, if you can't make it right uh, we will always try to host this once a month so june july. We'll have you know an event as well, so, depending where you're watching this video just go down to this link, we should have the upcoming event right.

Uh stated on this page over here, so just go up sign up for it. I'll put the link somewhere below this video. I wish you good luck. Good trading! I will talk to you soon.

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