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  5. What is Pullback Trading

What is Pullback Trading

Stock market or stocks do not move in a linear fashion but keeps swinging. When in a bullish trend, the correction or cool down is referred to as Pullback and is a good opportunity for the traders.

Likewise, during a bearish trend, any recovery from lows is referred to as Pullback and presents an opportunity to enter short side trade.

Pullback trading is an opportunity to enter trade during an ongoing trend and presents the right price at right time thus minimizing risk and maximizing reward. SBER SMI analysis tool helps traders and investors find such pullback and opportunity window at any timeframe.

Pullback trading is a Fibonacci based trading and requires power candles for analysis.

Power candles indicate the continuation of the trend and usually also helps in profit maximization and in finding trend reversals.


See the image below for an example of a pullback trading