A pullback entry method: wait for price to bounce and break a trendline, then enter on a retest of the 21-period moving average. Stop loss sits at half the distance between entry and the prior high. Works best for trading back up to the high.
Now I've got a bounce off the level, got a break of the trend line, and Price has told me it wants to go higher. So very simply, all I would do in that scenario is I will wait for Price to come back down and test the moving average. So if it comes down, it's the moving average. That's my entry. You simply trade back up to the high and that distance there, whatever it is, let's say it's 100 points. Your stop goes to your points below. So your stop is always half the distance between the entry point, which is the 21 moving average. So again, if that was 200 points, your stop would be 100. You just move it that way. Because if we think about it in this scenario, once we come back up, so let's say the trade triggers, we're good and we reach our target. If we go any higher than that, we're moving into the with the trend condition. Now, somebody might be listening saying, well, can I hold it for longer? And the answer is yes. But you want to know how that's going to impact your results.
