Every complex pullback starts out as a simple pullback, and the transformation often occurs in front of our eyes. Trading complex pullbacks may present a challenge, since, for better or worse, we may have participated in trading what was at the time a simple pullback.

It is important to maintain an impartial, detached, clear view of events as they unfold, regardless of what the outcome of any previous, simple-pullback trade may have been (on the charts below, the thinner markups indicate the original, simple-pullback setup, while the thicker lines mark the current complex-pullback setups.)

Note: since these two pullbacks we monitor are evolving on the markets as we speak, we thought we’d share this insight on this slow-moving Friday. Grab a license to one of our Momentum strategies and join us in Remek! Premium where we navigate the markets every trading day of the year, in real time. Mindful trading!