How to trade a throwback and a pullback?
What are a throwback and a pullback?
A throwback hits a new high price, but will quickly reverse and return to the initial price prior to the breakout. A pullback hits the previous major support, and will quickly resume the uptrend.
How to trade a throwback? What are some of the reasons one may fail to trade a throwback?
Go long when the price breakout higher, and go short when the price start reverses direction. One may fail to trade a throwback possibly due to failing to differentiate a throwback from a potential new bull run. Also, possibly the trader correctly identified the pattern, but the trend reversed suddenly and trapped the trader.
How to trade a pullback? What are some of the reasons one may fail to trade a pullback?
Go short when the price breakout lower, and go long when the price starts going higher. One may fail to trade a pullback possibly due to failing to differentiate a pullback from a trend reversal. Also, possibly the trader correctly identified the pattern, but the trend reversed suddenly and trapped the trader.
Thank you for reading!
Greenfield
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Disclosure: Article written by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.
What are a throwback and a pullback?
A throwback hits a new high price, but will quickly reverse and return to the initial price prior to the breakout. A pullback hits the previous major support, and will quickly resume the uptrend.
How to trade a throwback? What are some of the reasons one may fail to trade a throwback?
Go long when the price breakout higher, and go short when the price start reverses direction. One may fail to trade a throwback possibly due to failing to differentiate a throwback from a potential new bull run. Also, possibly the trader correctly identified the pattern, but the trend reversed suddenly and trapped the trader.
How to trade a pullback? What are some of the reasons one may fail to trade a pullback?
Go short when the price breakout lower, and go long when the price starts going higher. One may fail to trade a pullback possibly due to failing to differentiate a pullback from a trend reversal. Also, possibly the trader correctly identified the pattern, but the trend reversed suddenly and trapped the trader.
Thank you for reading!
Greenfield
Remember to click "Like" and "Follow!"
Disclosure: Article written by Greenfield. A market idea by Greenfield Analysis LLC for educational material only.