One of the most popular trading strategies used by many traders is the pullback trading strategy, the idea of which is to buy when the price returns to critical support during an uptrend or buy pulses around important moving averages or when signals are oversold. A pullback trader will engage in an uptrend as the price corrects and has a better RR ratio when trading low.

One area where prices are likely to rebound in a long-term uptrend is the moving average MA 50. Basically, the MA50 acts as a price zone for buyers to engage in trading when the price returns. to be able to buy it at a low price.


This pullback signal is best used by stocks that lead the market but are in an accumulation phase. It has a higher probability of success when we wait for a price wave to touch the MA 50 and be pushed back. This factor confirms the buy signal before entering a trade.

The signal is not always correct, you should identify a pullback that will find a price zone around the 50-day SMA or EMA. The stop loss will be the closing price below the 50 MA. You can then keep the profit in the direction of the trend until it reverses.

The Relative Strength Index (RSI) is an indicator that measures price momentum when the price moves too far and too quickly in one direction. When the RSI is below 30, it can be a signal of oversold, it is likely that the price will be pushed back up. Even in strong bullish charts, it can end with pullbacks strong enough to create an oversold signal with the RSI below 30. When the chart reaches 30 or lower then bounces back. Higher, which is a potential signal of the opportunity to enter in the pullback, after the price has shown the presence of buyers at that price level. The stop loss will be when the RSI cuts below 30 again and the possible profit target is 50 on the RSI.


One of the biggest pullback signals in the long-term uptrend is a pullback back to the 200 SMA moving average. This will often create a very good RR for a short run or a point. Good entry for a new long-term uptrend to continue.

The stop loss is when the price closes below the 200 SMA and the short-term profit target can be the 50 SMA moving average or can hold this position for a longer trend-following trade.


The downside of a pullback trading signal based on the 200-day SMA is that it can give a lot of noise around it as the price moves back and forth to this 200-day SMA. However, when it acts as a trend filter, it can make really large profits to cover small losses.

It can be said that these are the pullback trading methods that traders often use, it is important to always wait for a pullback back to an important price zone, get confirmation and trade.