FOREX TRADING STRATEGIES – How to Trade Pullbacks Correctly using Price action

I’m going to go through pull backs or retracement, if you want to call them that and explain what I look for in a pullback and what I don’t look for in a pullback, so to briefly go through how I look for trades I mean 95 percent of my trades are this type of trades with a swing trade and they’re really simple and easy to trade, so basically we’ve got a key level marked of a swing low and now what I’m doing is I’m waiting for price to break through this level and, and then once it’s broken through and push lower I’m looking for a retracement or a pullback back to this level to confirm that this level is now acting as resistance rather than support, so to confirm this I’m looking for a price action setup, so a bearish price action setup would be what I’m looking for here to push the market back down, so what I’m trying to do is use this current momentum and get back in on this current momentum, I’m not looking further back at the charts to see what’s happened a month or a year ago I’m just currently looking at the current momentum and trying to use that to get into the market, so a handy tool to guide us to check that these pull backs are large enough is the retracement tool, so I’ve slightly modified it to make it really easy and quick to check that the pullback is large enough, so for a pullback to be large and, if I’m looking for it to be around the 50 to 61.8% retrace my section obviously it’s got a time with the with the key level levels are king and, if there’s no level that ties in with the fifty or sixty one percent then it doesn’t matter I have to have the key level there that’s the main point I want to put out there and, but this fibs tool really helps to just double-check that it’s pulling back enough to allow for the trades have enough space to move back into, so what do I mean by having the right amount of space well, if we took a trade back up here this nice key level the last swing point is down here, so we’ve got a fair distance before it’s going to come down to this level, if we took the 38.2 retracement which would be vaguely around here and we took a set up from here now we’re trading back straight into this lower level and obviously as you can see the distance is a lot smaller, so it it means the trades got less space to move into and that’s not what we want, so I’ll just show you another example, because just remove this and I’ll move this down to the most this recent swing low here, so again a very simple mark this level up watch to see, if price could break through it did continued on lower, so as soon as this supports broken I’m now my radar switched on to hunt for trades back up after the pullback to confirm that this levels now acting as resistance, so again I’m looking for a bearish price action setup to get me into this trade to push this lower and fortunately there’s nothing there’s no setup for me here and, but this is just a highlight how I go looking for trades, so again I can quickly throw up the the FIB stool the last high the last low and again you can see this zone ties in lovely with the key level, so it just adds a bit more weight to this trade which is really handy, so I’m hoping this video is, maybe made you think about retracements or pullbacks and whether you’re looking for them in the right place or whether you’re taking to shallower pullbacks, if you head over to my website don’t let the Forex drive you up the wall comm there’s a whole load of information on how I trade and everything, you need to know about price action to get you trading properly, if this video has helped you out and much appreciate, if you can give me a like or a comment.

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