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On the evolution of pullbacks

Simple vs complex pullback

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!

See this gallery in the original post