In this THREAD I will explain “Pullbacks”
1. What is a Pullback?
2. Corrective Pullback
3. Impulsive Pullback
4. Moving Averages
5. Bollinger Bands
6. RSI
1. What is a Pullback?
A pullback is a pause or moderate retracement in the price.
Price retraces due to the recent peaks that occur within a continuing uptrend.
In this image is explained what is a "Valid" Pullback.
2. Corrective Pullback
In a corrective pullback price returns to the Demand Zone.
Sweeps the existing liquidity and shows that there's not selling pressure.
The pullback is moderated, not agressive.
3. Impulsive Pullback
In a Impulsive Pullback, price drops impulsively and agressively.
Theres no interest in stopping at the Demand Zone.
The trend is lost, and is not convenient to place abuy in the Order Block.
4. Moving Averages
Some Indicators as MA's are very useful to identify Pullbacks.
This is a "Corrective Pullback" in $BTC Price Action.
Price retraces to 100MA in the Daily TF, and from there bounces and keeps the Bullish trend intact.
Price DOESN'T lose the TREND.
5. Bollinger Bands
BB is a great indicator to identify trends.
In this example, we can find a "Impulsive Pullback" in $BTC Price Action.
Price doesn't react to the Demand Zone, therefore, an agressive sell happens.
When you see the price losing this levels, DON'T BUY.
6. RSI
Through the RSI you will can identify HIGHS and LOWS of the current MS.
In this example, you can see "Corrective Pullbacks"
None of this Pullbacks lose the current trend.
RSI will identify us the HIGH and the LOW of this Pullbacks.
