Chart reading, explanation, comprehension, verbalization

Don’t know the pullback? Retire.

First, I must apologize.

To grab your attention, I deliberately used a strong headline.
If anyone felt offended, I am sorry.

However, in this article, I intend to deliver what is essential clearly.
I would be happy if you read to the end.

“Let’s buy on the pullback”

When you start trading, you will hear this phrase many times.
You probably think you are buying on a pullback as well.

Now, may I ask just one question.

Where is your supposed “pullback”?

“A little decrease”
“Somehow it became cheaper”

If you answer like this,
I must tell you some hard facts.

That is not a pullback. It’s just a “dip.”

Check whether it applies to you

□ You think it’s a pullback and buy when price slightly falls
□ You can’t explain pullbacks in words
□ You haven’t decided which time frame’s pullback you are targeting
□ You bought on a pullback but price continued to drop

If two or more apply, what’s written in this article is the cause of your losses.

Pullbacks exist only within an uptrend

A pullback is a temporary decline in the middle of an uptrend.

What’s important here isthat the uptrend is assumedto be present.

If there is no uptrend, there is no pullback.
Within a downtrend, a drop is not a pullback, it’s just a decline.

Therefore, before looking for pullbacks, there is something to confirm first.
Is the higher timeframe actually in an uptrend?

Skipping this and buying because it dropped is
like looking at a map and thinking the downhill is a shortcut without checking the route.

Pullbacks stay pullbacks only until you break the low

There’s one more important point.

Even when price falls within an uptrend,
pullbacks are only valid while the pullback low (the low that began a higher low) is not breached, and only then is it still a pullback.

If you break the pullback low, the premise of the uptrend collapses.
Then it’s no longer a pullback.

Knowing a pullback means
knowing “how far down it can drop and still be a pullback.”

Pullbacks, and which time frame to measure them on

I decide direction on the 4-hour chart and measure pullbacks on the 1-hour chart.

When you view a pullback on a larger time frame from a lower time frame, it looks like one single movement.
Measure the pullback on the 4-hour chart with the 1-hour chart, and the pullback on the 1-hour chart with the 5-minute chart.

Which pullback of which time frame are you measuring, and with which time frame?
If you decide this, you will not end up buying at different levels each time you attempt a pullback buy.

What you can learn from the video

・How to distinguish actual pullbacks from merely declines on real charts
・How to identify where a pullback ceases to be a pullback (the pullback low)
・How to measure the pullback on the 4-hour chart using the 1-hour chart
・The sequence to confirm while waiting for a pullback

People who this video suits

・People who think they are buying on pullbacks but keep losing
・People who cannot describe pullbacks in words
・People who are unsure which time frame’s pullback to look at

From here, the actual charts will be used in a video with careful explanations.

▼Paywall from here