668# Pullback Forex Strategy

Pullback trading

Submit by Orazio (author WDaouFx)

Pullback Strategy is a trend system whose purpose is to look for retracements on the moving average in the direction of the trend.

50, close, high,and low exponential moving averages
Stochastic oscillator (20,3,3) overbough at 80 and oversold at 20.

Trading rules
Long Entry
If trading the 1h chart, both the 1h and 4h timeframes MUST BE OVER the 50 emas. If daily also is? GREAT!
* If trading the 4h chart, both the 4h and the daily MUST BE OVER the 50 emas. If weekly also is? GREAT!
Short Entry
If trading the 1h chart, both the 1h and 4h timeframes MUST BE UNDER the 50 emas. If daily also is? GREAT!
* If trading the 4h chart, both the 4h and the daily MUST BE UNDER the 50 emas. If weekly also is? GREAT!
ENTRIES
Needless to say that all trends make HH and HL (bullish) and LL and LH (bearish).

- When spoting the stochastic entering the overbought or oversold area, look for the current swing leg and draw the fibonacci retracement.
- My sweet spots are the 61.8 and 78.6 fib retracements. IF IT PASSES THESE ZONES MY ENTRY IS OVER!
- Once a candle is closed and it makes the stochastic lines touch or become "SUPER CLOSE" INSIDE the overbought or oversold area we open a position at the open of the next candle. The safest is waiting for stoch to cross after candle close;
- If all the above criteria are met but the pullback haven't reached at least the 61.8fib retracement you can wait a tap at it before entering, unless you have a good motive to get in before the "sweet spots".

Exit position
- Put the SL on the nex fib area toched by the candles +10pips, Since my sweet spots are the 61.8 and 78.6 fib retracement usually my SL are above/below the last fib zone.
- TP is at -27 of the leg, so you have to adjust your fib configurations
- Move to breakeven once it has reached the same amount of pips as you sl. Example of trades.