Strategy Library·Intermediate· 5 min

Pullback continuation

Ride the trend by entering on the rest, not the run.

What it is

In a defined trend, wait for a pullback to a structural level (last HL in an uptrend, last LH in a downtrend), then enter in the trend direction on confirmation.

When it works

Established trends, orderly pullbacks that respect prior structure, and pullbacks that stall into a support/demand zone.

Confirmation

Wait for a rejection candle, an inside bar breakout, or a reclaim of a short-term high/low.

Entry & stop

Enter on the confirmation trigger. Stop below the pullback low (long) or above the pullback high (short). Target the prior trend leg high/low for 1.5–3R.

Watch it on the chart

Chart breakdown

Uptrend with 3 HH/HL swings, pullback into last HL, entry marked.

Key takeaways

Trends give you multiple entries — you don't need the first one.
Pullbacks that respect structure > pullbacks that don't.
Confirmation candle protects against catching falling knives.
R:R often improves at the pullback vs the breakout.

Quick check

Uptrend has three clear higher lows. Price pulls into the last HL zone. What's the best action?

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