---
title: 'Best Pullback Trading Strategy That Will Change The Way You Trade'
source: 'https://youtube.com/watch?v=cKKLujAdvzk'
video_id: 'cKKLujAdvzk'
date: 2026-08-05
duration_sec: 598
---

# Best Pullback Trading Strategy That Will Change The Way You Trade

> Source: [Best Pullback Trading Strategy That Will Change The Way You Trade](https://youtube.com/watch?v=cKKLujAdvzk)

## Summary

This video presents a pullback trading strategy designed to help traders enter trends at lower risk. It explains the concept of pullbacks, identifies three common levels where pullbacks tend to end (previous resistance/support, trendlines, and moving averages), and introduces several confirmation techniques including candlestick patterns, trendline breaks, and the RSI indicator.

### Key Points

- **Definition of a Pullback** [00:03] — A pullback is a correction that happens in an existing trend. In an uptrend, price makes higher highs and pullbacks; entering on a pullback reduces risk compared to buying at the high.
- **Level 1: Previous Resistance/Support** [01:13] — Pullbacks often end at previous resistance levels that have turned into support (and vice versa for downtrends). The video shows an example where price broke resistance, pulled back to that level (now support), and continued up.
- **Level 2: Trendlines** [02:06] — Pullbacks frequently end at trendlines. In a downtrend, price pulls back to the trendline and continues down; in an uptrend, it pulls back to the trendline and continues up.
- **Level 3: Moving Averages** [02:36] — Pullbacks often end at moving averages, such as the 50-period MA. The video notes that other periods (20, 100, 200) can also act as levels, and traders should adjust to what the market reacts to.
- **High Confluence Areas** [03:17] — When multiple levels intersect (e.g., moving average and support), it creates an area of high confluence, increasing the probability of a reversal. However, price can still break through, so confirmation is needed.
- **Confirmation: Candlestick Patterns** [03:43] — Candlestick patterns like engulfing patterns and hammers signal rejection at key levels. An engulfing pattern shows strong selling/buying pressure; a hammer shows rejection of lower prices.
- **Confirmation: Break of Trendline** [06:17] — Another confirmation is drawing a smaller trendline at the pullback and waiting for price to break it. This signals that the pullback is over and the trend is resuming.
- **Confirmation: RSI Indicator** [07:34] — Set RSI settings to 50 for the middle line. Wait for RSI to cross above 50 for a long entry, or below 50 for a short entry, to confirm rejection at a key level.

### Conclusion

The pullback strategy involves identifying key levels (support/resistance, trendlines, moving averages) and using confirmation techniques like candlestick patterns, trendline breaks, or RSI to enter trades with higher probability. Mastering multiple confirmation methods allows traders to adapt to different market conditions.

## Transcript

pullback strategy that will change the way you trade so without further ado let's get on with the video first let's start with the basics what is a pullback exactly a pullback
is simply a correction that happens in an existing trend understand let me give you a scenario let's say is on an uptrend and you're looking to enter a buy position
now if you're an experienced trader you would know that it's quite rare for a to move in a continuous upwards direction most trends will actually look like this where the price is making a series of
higher highs and pullbacks and so if you took a when the price is making higher highs there's a chance that a pullback or even a trend reversal might happen so instead of taking that risk it's
pullback before entering a position this way you are essentially buying the trend at a lower risk
here and not just continue downwards well based on my research i actually discovered three common levels where pullback usually ends and the first level
you an example over to the left we saw the price rejected this level multiple times which makes this an area of resistance next the price broke out of the
resistance and made a pullback notice where the pullback ended the previous resistance now turned support and then we saw the price went up even more and made a pullback once again and where
did the pullback ended the previous resistance now turn support the same concept also applies for downtrends as well moving on the next level where the market tends to pull back into
is the trend line so in this chart we spotted a downtrend and so we can place a trend line above here because price rejected it multiple times pullback towards the trend line and went down pulled back towards the
and went down so that was an example of the price pulling back towards a trend the price pulling back towards a trend line possibly pull back into is the moving average here
we spotted an uptrend and so we can apply the 50 period moving average as our key level now remember for this specific example we are using the 50 period because that's what the market is reacting to
in the past markets can also react to other periods like the 20 other periods like the 20 100 and 200 period so you need to adjust to and as you can see the price made a
pullback towards the moving average and traded higher pull back towards the and traded higher and that was an example of the price pulling back towards the moving average now there are also situations where you
can find multiple levels in one chart like in this example we have the 50 period moving average applied and the price pulls back but notice that there's actually a level of support intersecting here this is called an area
of high confluence and usually when price approaches an there's a higher chance that a reversal will form will form but keep in mind you cannot blindly
just because the price made a pullback towards the level prices can still break and continue downwards and that is why you need to use other confirmation techniques before entering a position and one of
use are candlestick patterns let me show you an example so here's a current downtrend as prices made lower highs and lower lows next we have the 50 period moving
average applied as our key level and a resistance line intersecting it which makes this an area of high confluence now as price made a pullback towards the confluence you're looking to see if the price would
show some type of rejection and what we got was a candlestick engulfing pattern which is when the second candle's body completely engulfs the previous candle so what this shows us is that at first
buyers pushed the price all the way up creating a medium-sized green candle but then sellers stepped in and started pushing the price back down even as far as surpassing the previous candles opening price
which indicates that there's a strong selling pressure at this area and if you want a stronger confirmation you can wait for the next candle to form which happens to be another big red candle
so this is a good opportunity to take a short position chart over to the left we spotted an area of resistance as
prices rejected this level multiple times then we saw the price pullback now to confirm that the price will upwards you're looking to see if there's some
type of rejection at this area and what we got was another ejection in the form of a hammer which is when the bottom wick is sticking out so what this tells us is that
at one point sellers tried pushing the price all the way down breaking the support level before buyer starts coming in that there's a strong buying pressure at this key area now
to further confirm that the price will continue upwards the next candle after continue upwards the next candle after that was a big green candle and so this is a good opportunity to take a long entry
finding candlestick patterns that signals rejection moving on the next confirmation technique that you can use is called break of a trendline and this is how it works
in this chart we have a downtrend and a trendline drawn as our key level now as price has made a pullback towards the trend line we want to confirm that the price will actually reject this level and continue
we can do that by drawing another smaller trend line right at the pullback once the price broke out of the smaller trend line that's where you want to enter your cell position
chart here's an uptrend and we have our trend line placed below here which makes this an area of high confluence now as price made a pullback towards the
confluence you draw a smaller trend line above it to confirm our signal you need to wait for the price to break out of the smaller trend line once this happens you take a buy
once this happens you take a buy position trendline breakout technique don't force it instead you want to use
other confirmation techniques in this case we saw a bullish engulfing pattern which means we're using candlestick patterns to confirm this setup that is why it's important to master
multiple confirmation techniques so that you don't just rely on one strategy so if you found a market that doesn't support a particular strategy you can always use the others to avoid missing trade opportunities
now moving on another confirmation technique that you can use is with the rsi indicator but first you want to edit the rsi by going to settings and change both of these values to 50
middle like this and this is how the strategy works here's the usd cad with the rsi indicator applied and we saw the price rejected this level multiple times
which makes this an area of resistance next the price broke out of the resistance and made a pullback now you're looking to see whether the price will actually reject this level
and continue upwards the way you do that is by waiting for the rsi to cross above the middle line so this will be a good long entry let's
show this again in another chart here we have a downtrend and the rsi indicator applied then we saw price rejected this upper meaning we can place a trend line above it next
we also have your clear level of support which makes this an area of confluence now as price came back up to this level we want to confirm that the price will actually reject this level and continue downwards we do that by
middle line so this is a good opportunity to enter a so this is a good opportunity to enter a short position
pullback trading strategy that you can immediately use right now and all i ask for in return is for you to invest 2 seconds of your time into liking the video and subscribe to the channel it
literally takes only 2 clicks but it means so much to me and you can also check out my other videos as well so thank you guys for watching and i'll so thank you guys for watching and i'll see you in the next video