A pullback can lose momentum before the main trend resumes.
Look for:
- Decreasing countertrend volume.
- Weak opposing delta.
- Absorption at a reference level.
- Fresh aggressive activity in trend direction.
This approach can help avoid chasing extended candles.
Do you wait for pullback exhaustion before entering a trend?
Yes, I prefer waiting for pullback exhaustion because entering too early can expose a trade to unnecessary risk.
Decreasing countertrend volume is a useful clue, especially when price approaches a strong reference level.
I look for confirmation that the dominant trend is regaining control before considering an entry.
A pullback should not automatically be treated as a reversal. Understanding the strength behind the move is essential.
Waiting for fresh aggressive activity in the trend direction can help avoid chasing extended candles or entering prematurely.
