In my previous article, I talked about how small retail traders can make money and mentioned that I will share more on how to read market structure, how to trade pullbacks etc in my future postings. I think the recent falling Gold price will make an excellent case study and I have personally traded on it too.
It is very common to hear gurus say, “Follow the trend. Don’t fight the trend. If it’s uptrending, buy on pullback. If it’s downtrending, short on pullback”. A pullback is a move against the prevailing trend. In our example – a pullback in a downtrend means a bounce up against this falling price and is an opportunity to enter a short position.
But they never tell you that it’s not that easy to trade because there are different kind of pullbacks: Simple Pullback & Complex Pullback
A simple pullback is pretty self-explanatory (diagram ......