Do you not know the dip? Retire.
Chart reading, commentary, comprehension, and linguisticization
You don’t know pullbacks? Retire.
First of all, I must apologize.
I intentionally gave a strong title to grab your attention.
If I caused any discomfort, I am sorry.
However, in this article I intend to deliver what is essential clearly.
I would be grateful if you read to the end.
“Let's buy on pullbacks”
When you begin trading, you will hear this phrase many times.
You probably think you are buying on pullbacks as well.
Now, please allow me to ask one question.
Where is your so-called “pullback” located?
“A little drop”
“Somehow it became cheaper”
If you answer like this,
I must tell you something harsh.
That is not a pullback. It’s just a “decrease.”
Check if it applies to you
□ When the price dips slightly, you think it’s a pullback and buy
□ You can’t describe a pullback in words
□ You haven’t decided which time frame pullback you are aiming for
□ You bought on pullback but it kept falling
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 drop in the middle of an uptrend.
What matters here isthat an uptrend is the premise.
If there is no uptrend, there is no pullback.
A drop within a downtrend is not a pullback; it’s just a decline.
Therefore, before searching for pullbacks, there is something to confirm first.
Is the higher timeframe really in an uptrend?
Skipping this and buying because “it dropped” is like
believing the slope ahead is a shortcut without consulting the map.
Pullbacks stay pullbacks only while you do not break the low
There is one more important thing.
Even if it drops within an uptrend,
pullback lows (the low that became the starting point for updating the highs) remain intact, and it remains a pullback.
If you break the pullback low, the premise of the uptrend collapses.
Then it is no longer a pullback.
Knowing a pullback means
being aware of “how far down can you go and still call it a pullback.”
Pullbacks and which time frame you measure them on
I decide the direction on the 4-hour chart and measure pullbacks on the 1-hour chart.
When you view the pullback of a higher time frame on a lower time frame, it appears as a single move.
Measure the pullback of the 4-hour on the 1-hour, and the pullback of the 1-hour on the 5-minute.
Which pullback you measure on which timeframe.
If you decide nothing, you will buy at different places each time you attempt a pullback trade.
What you can learn from videos
・In actual charts, how to distinguish pullbacks from “just declines”
・How to spot where the pullback stops being a pullback (pullback lows)
・How to measure the 4-hour pullback on the 1-hour chart
・The order of verification when waiting for pullbacks
This video is for people who
・think they are buying on pullbacks but keep losing
・cannot describe pullbacks in words
・are unsure which time frame pullbacks to watch
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Articles that deepen understanding when read together
▶ Dow Theory. In the end, Dow Theory. The beginning is the most important thing. It’s the basics.
This explains the basics of identifying highs and lows. If you read this before the main article, you’ll understand where the “pullback lows” are much more clearly.
https://www.gogojungle.co.jp/finance/navi/articles/129105
From here on, I will carefully explain using actual charts in videos.
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