Home Trading Strategies Do You Make This Pullback Trading Mistake?

Do You Make This Pullback Trading Mistake?

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Do You Make This Pullback Trading Mistake?

hey hey what’s up my friend so in today’s training I only share with you pullback trading and there are many of you right who trade pullback and is making one of these mistakes and that probably lead to you know trading pullback and then suffering a series of losses your trading pullback but not getting the results that you want your treating pullback but somehow your losses is always larger than your gains what is going on Rainer well that’s because you’re probably making one of these mistakes number one you only wait at saponin resistance what do I mean by this so let me give you an example so let’s say this is uh this is a chat of Aussie against the Swiss franc and you can see that this market is in a downtrend right lower highs lower lows so what many traders will do is they will plot their level over here somewhere about here okay you can see that over here price previously was support support support then you broke down now support is likely to become resistance and they wait in that area and this area now what’s the problem with this well if this is the only area that you’re looking to shut the market then you’re missing a lot of trading opportunities because the market might not retest this level in might just make a pullback and then the pullback ends and continue lower and when that happens you’re watching on a silent arm and not another you know move that I miss another wasted opportunity I should have known it I should have chased a market into the market blah blah blah why is that well that’s because you only know how to identify one area of value and that’s supporting resistance and there’s more to it which I’ll explain later okay so this is a mistake right that many traders make right is that the only weight and support resistance and that’s not how pullback trading is meant to be there other areas of value right to trade from which I’ll share more later so let me give you another example if you look at this chart another up trending market right this is the 10-year Treasury note futures and again traders they look at this chart they know that it’s in an uptrend and Waner and Rainer is a trend trader he say when the market is in an uptrend we look to buy and where do they look to buy again they only look at one specific area of value which is support support support support and now let me ask you how many times did the price retest this area of support retest this area of support reaches this area of support Reid has this area of support based on the chatter we are looking at right now you can see that this market wouldn’t give you an opportunity right to buy and support you would have the opportunity to buy and support you would have the opportunity to buy and support so this should really write make you think that men went on a trip pullback it is more than just support resistance and I’ll share with you later what else are you should be looking at so that’s the first mistake many traders make is that the only way its support of resistance any wait and wait and wait and by the time the price comes to support resistance that’s where the pullback ends is the reversal and they get stopped out of the trade okay so not sure if any of you have experienced that if you have experienced what I just mentioned leave a comment below and say me – I feel you mistake number two you enter your traits too early that’s another one right you you time the pullback over the market it’s coming to my my poo back area and then next thing you know you buy market collapse lower what’s going on right that’s because you buy or you enter your treats too early so let me give you another example here for this one over you can see dollar Canadian okay look how bullish this market is I can see that market broke out of this resistance break out makes a pullback and next Kendall over here the most recent Kendall the market has closed higher for the day and you know it is poor night traders who miss the trade they are anxious to get it oh the Poobah is coming to an end let me buy buy buy and when they buy at this price they wonder why they get stopped up off the tree why why is that I’ll explain to you why shortly but this is a mistake that traders make when they treat pullback they enter dear trades too early another one pound yen if you see over here same thing the market pretty much broke below this area of support strong bearish momentum maybe a couple of candles pullback here pull back here and in this candle at one point in time if you imagine this this candle was actually trading near the lows over here it was actually pretty bullish to the lows right that the closing price which was actually near the lows of this candle I mean before the market closes it was a rate bearish candle and many traders they get excited oh man the Poulet is coming to an look at how great this candle is time to short let me go shortly sell what happened well they entered their trades too early and they got stopped out again okay so that’s the second mistake traders make is there they enter their treats too early when they are trading too bad and now this brings me to my next point how should I treat pullback all right Reina I know I can just focus on support resistance I mustn’t intimate race too early so how do I do it Reina how how how well that’s what you’re about to discover right now so the key thing that you must know right when you’re trading Poobah is you must pay attention to the market structure now I can give you a full lesson on market structure so we will just talk about market structure in a trending market so here’s the thing right not all trends are created equal some markets are in a strong trending behavior some are in a healthy train and some is in a weak trend so let me point out to you the subtle difference in a strong trend the price tends to stay above the twin dma in an uptrend and in a strong downtrend a price tend to stay below d 20ma in a healthy trend the price tends to pull back or retrace towards the 50 period moving average and in such a healthy trend the market also has a tendency to retest previous resistance debt could become support and vice-versa for a downtrend and finally a weak trend this is the weakest of them all this is where the pullback is usually very steep very deep right it tends to find a support resistance and a 200 ma or a previous support resistance area right I know this is a little bit of a theory so let’s look at some examples right to kind of know illustrate these points that I just share with you because once you understand this right trust me you will never look at pullback trading the same way again once you understand this trending market structure so first one let’s have a look at this one over here ozzie Swiss franc remember earlier right many traders if you look you just zoom out they are waiting at this previous support that could become resistance but now if you understand market structure you would know that that is not the only area of value to trade from because you can also trade from other type of area of value for example the 20 ma why the 20 ma because if you look at this market this trending market structure the market right now is in a strong down train it’s consistently below the 20 ma below the 20 ma and still below the 20 ma tested once twice and trice okay so at this point I won’t be looking to sell at this area of resistance I will be looking at this 20 ma for trading opportunities the market has give me clues that he has respected the 20 ma he tested once twice and right now is that this area once again okay so now the 20 ma is a key area that I’ll be looking for to trade the pullback and how can I trade the pullback so let me give you a couple of ideas to trade the pullback number one what you can do is you can look for a bearish price rejection and the 20 ma this could be in the form of a shooting star a bearish engulfing pattern for example market breaks out higher okay breaks out higher and then suddenly reverse near the lows and close lower for the day so this looks something like a bearish candle like this okay then you have a long wick sticking up right this is a form of price rejection and that’s one way to time the market because this tells you that the buyers have difficulty pushing a price higher and the sellers came in to control it you know close the price near the lows of the day when that happens you can look to sell on the next candle open stop-loss can go above this candle high that’s one approach another approach right which is what I really really like is what I call the break of structure technique so if you go down to a lower timeframe like the two hour time frame you see that right now the price right is still being controlled by the buyers how do I know that well you can see a series of higher lows and higher highs right now these points do forming a series of higher highs and higher lows so I don’t want to shut the market just yet because the buyers are still in control but one thing that I do know is that on a higher time frame the daily timeframe as we have seen earlier the trend is towards the downside and we seen earlier that the price is also at this area of value which is a 20 ma so what I can do is that on the two hour time frame I can use this time frame as an entry figure to shut the market and the entry trigger could be as simple as you know a break off structure where the price makes a series of lower highs and lower low so one possibility is that the market could hit down lower okay then it bounced up higher and now if the price were to break below this lows or at this area of support I will now have a series of low high and no this tells me that the sellers are about to come in to push the price lower and on a higher time frame you’ve seen that we are in a downtrend so this can serve as an entry trigger to shut this market to time the pullback does it make sense okay so hopefully this one right is clear for you to trade in a strong trending market what about a healthy trend if you look at this again this market again if traders again they were to wait it you know support support support support right they probably wouldn’t find too many trades because the market didn’t retest those previous areas of support so now how can we treat this market first of all most yourself what is the current market structure I know it’s in an uptrend right I’m fine Rina derp it’s an uptrend but let’s get more specific what type of uptrend is it what is the current trending market structure and if you’ve seen earlier we shared with you three times strong healthy and weak so which is it which is it one way to find out is let the MA be your guide and if you just pull out a 50 ma you realize that this market tends to respect the 50 period moving average okay that the depth of the pool is deeper is steeper than what you have seen earlier on Aussie Swiss franc so it tested once twice thrice four times so if you ask me that’s a good chance this market could find buying pressure at this moving average and this 50 period moving average and also if you recall I mentioned earlier that for a healthy trend you can also find trading opportunities at previous resistance and support and if you look back at this chart again you realize that in a healthy trend previous resistance which is here resistance that could now become support so right now if I want to buy final trade this pullback I will be looking at this area around the one nine six four five area again entry trigger very simple we can look for a bullish price rejection like a hammer or we can look for a break of structure on the lower timeframe either on a to or forward timeframe to time to time our entry and to create this pullback does it make sense another one right let’s look at this market structure now go if you look at this market structure of go what is it is it in a strong trend a healthy trend or a weak train again if you look at things are just zoom a little to me I will classify this as a weak trend because the historical pullback has been pretty steep this one is pretty steep so for a weak trend again where is our area of value well it’s not gonna be the twin DME it’s not gonna be at a 50 ma that’s for sure where you’re looking for creating opportunities to be at support resistance area so this is a weak uptrend so I’m looking for buying opportunities in this area of support and sometimes right in a weak trend you can also find that the market respects the 200 ma so let’s see whether the 200 ma holds up here you can see they tested up pretty much a considered is one time to time okay so again around the 200 ma area around this area of support is where I’ll be looking for buying opportunity I won’t be you know using my tool like a 20 ma doesn’t really make sense right I won’t be using a 50 ma because clearly this market don’t really respect this too moving average so you have to understand right the market structure once you do then you know which are the areas of value to look for trading opportunities make sense so let me just walk you through a couple of entry triggers again because I think that is important as well when you’re trading pullback so first and foremost right the first entry trigger that I mentioned earlier is that you can look for a bullish price rejection for an uptrend so let’s say the market is down lower lower lower lower and then it forms a something like a hammer over here this is a bullish signal is telling that the buyers are stepping in right and willing to push the price higher the bias possibly in control so this is what I call a false break where the price breaks below this area of support only to close back higher above support right if that’s the case right you can go along on a next candle open right stop-loss will go below this lows over here okay that’s one way the other way is what I call the break of structure so you go down to a lower timeframe and look for a break of structure so let’s say we go down to the four hour time frame you can imagine right just imagine this if the market were to retrace down lower to this area of support every so on a daily time frame it will look something like this our series of lower highs and lower lows probably something along those lines so when you look for a break of structure you want the market to invalidate this market structure you wanna mind to invalidate this series of lower highs and lower lows so what are you looking for well you’re looking for a series of higher highs and higher lows and there are many variations to it could be something like an inverse head and shoulders pattern it could be an ascending triangle pattern then all possible variations could be something like this then it has to consolidate here then this is your neckline your resistance and if the price breaks out you now have a series of higher high and higher low that’s one variation of it looking something like an inverse head and shoulders pattern or it could also be like a ascending triangle pattern like this and if the price breaks above this resistance now you have a series of higher high and higher low so you can see that really the concept is what matters that I’m sharing over you’re not specific patterns not specific you know technical analysis no it’s really really the concept that I’m sharing over here okay I hope that makes sense so with that said let’s move on right so we talked about market structure and just one bonus tip for you or two bonus B tips number one market structure is always changing so I know many of you after you started this video is not as finding on where is the strong trending market right where is the healthy trend where is the wick trend I let me find all this you know patterns in the market but trading is not that easy right in reality when you’re trading this in real time market structure they evolved over time they change let me give you an example of what I mean by there so if you look at this one go over here okay we look at gold can see at this point Gold’s actually in a strong uptrend drug prices above the 20 ma and holding above it consistently then it broke below the 20 ma started chopping up and down breakout then to where we are right now so you can see at one point in time which is which is at this point in time market structure is in a strong uptrend then it changed evolved to the weak uptrend a we’ve seen earlier so the key here really the key here as a professional trader is that you must you must always anticipate right what the market could possibly do so at this point right from the formless see I’m trading this in real time I would tell myself right if right now the market were to break below the 20 ma if it’s going to invalidate this 20 MA I would shift my thinking right I was in okay this market is now no longer in a strong uptrend what are the possibilities well maybe it’s come to me moving into a healthy trend maybe into a weak trend maybe it would start to Grange so where is the next area of value that s my top process and I would say okay the next area of value could possibly be at this area of resistance previous resistance become support or and this area of resistance as well or maybe the market could form new price structure as what you’ve seen earlier the market actually what did is that it swings up forms a new low and swings up once again so now we have a new price structure or in fact run industry it’s actually the previous structure they’ve had over here so you can see that these are the top process that I’m gonna have so the key thing to take note right the bonus tips therefore use that number one market structure is always changing you have to be prepared for it and number two once you know that market structure is changing right you want to start identifying multiple areas of value the market might react to let me give you another example so if you look at this one over here we talked about all these fees from earlier okay so now this is my top process okay if the price were to break out of this 20ma it’s gonna invalidate this 20ma where is the mix area of value on this chart that is the question is on my head right now right it doesn’t mean it right now this market is is in a strong trend it’s gonna be in a strong trend forever no it could transit into a healthy trend could be moving into a weak trend so if this 20ma if he gets invalidated if he gets destroyed by the market my next area of value would be over here I would start waving at this area that’s one possibility at the same time I know that this market could possibly also form new price structure for me to trade off maybe the market could break out reverse down lower and then now this right becomes a new price structure that I could trade off maybe you could come back up higher and this would be the new price structure that I should be paying attention to so can you see it as a pullback trader as a professional price action trader you have to be anticipating all this even before it occurs you can’t just be having your one specific setup one area of value pray and hope the market comes to my area and it doesn’t come that’s it game over doesn’t work that way you’ve got to right one two steps are here and hopefully by today’s training right I have prepared you for that and again focus on the concepts don’t focus on whatever you know specific techniques patterns or whatsoever whatsoever it is the concepts that matter so don’t ask me questions like all Rainer can I use a 21 ma no use the fifty can I use the fifty-two ma uh uh you know that would really hurt my feelings right focus on a concepts are not these specific parameters or whatsoever evenly is the 20.

5 ami go ahead doesn’t really make much of a difference if you use the 57.8 ami go here it doesn’t make much of a difference the concept is what matters so quick recap number one the market can pull back to SR moving average trendline etc don’t enter your pullback treats too early right let the price come to your area of value understand market structure but is in a strong trend a healthy trend or a weak trend in a strong trend a market tends to respect the 20 ma in a healthy trade tends to respect the 50 mm and in a weak trend it tends to respect the 200 ma and indifferent market structure right you can find no trading opportunities like for example healthy train could be at a 50 ma it could be a previous support and resistance in a weak trend it could be a support and resistance etc and finally right what’s important is that you must identify multiple areas of value right because market structure is always changing I don’t be so fixated on just this one area right look at you know multiple areas of value such that if one area of value gets invalidated if the market breaks out of it right you know where else right to came forward for trading opportunities okay I hope that makes sense so we then said I’ve come towards the end of today’s training if you’ve enjoyed it right then I highly recommend you go down to my website trading with Rana comm scroll down and this guy over here would really complement right what you’ve just a little right the ultimate guide to price action trading with all more entries exits all right better timing your entries in the market support resistance and much more so go ahead download this guide click this orange button I’ll send it to your email address for free and we that’s it I wish you good luck but really until next time you

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