Operational Pullback Trading Guide
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ScribdTranslationsOperational Pullback Trading Guide
Translated by
ScribdTranslationsOPERATIONAL PULLBACK
PESSANO
BUY/ CALL
SELL/ PUT The dotted line symbolizes the
current price.
HIGH CANDLE LOW CANDLE
Maximum paving Minimum wage
Closure Opening
c c
o o
r r
p p
o o
Opening Closing
Minimum fuse Maximum fuse
LINE OF RESISTANCE
SALE
SUPPORT LINE
PURCHASE
HOW TO KNOW WHEN A CANDLE IS STRONG?
A medium/large candle is a strength candle.
If the candle leaves a maximum wick, it remains a candle of strength.
NOTE: IF THE WICK IS LEFT AT MINIMUM, IT IS NO LONGER A CANDLE.
STRENGTH, EVEN THOUGH IT IS A LARGE CANDLE (THIS HELPS
FOR HIGH AND LOW CANDLES
CHECKLIST FOR WHEN TO OPERATE
OBS It doesn't apply to OTC, this is only for the open market.
Follow all the rules, if one of them doesn't fit, choose.
another parity
CHECK THE PAYOUT
minimum of 80 %
maximum of 93 When the %rate is above 93 it means that the %
the market is not good for trading
2) LOCATE THE CORRECT PARITY
needs to make tops and bottoms.
the candles should leave a lot of wick.
There cannot be dominance of large candles and strong candles.
PUT THE GRAPH IN 5s
there cannot be dominance of DOJI.
There cannot be too many power candles.
PULLBACK TREATMENT
the layout will be done in M15 and the
OBS operations are carried out in M1, with inputs to
below 0:30s, if operating in M5 draw
in M30, with entries until 2:00m
It will only be a PULLBACK on the first touch after the
break. Then the area can continue
being respected, however, it will not be a pullback and
reverse/retraction candles.
1) START BY FINDING THE RESISTANCE
The wick must be above the current price and be the closest wick.
of the current price BUT cannot be glued to the price.
Only mark on the current candle if it has a lower wick.
RESISTANCE
...............................................CURRENT PRICE LINE
it is the candle that has the longest wick
close to the current price and is not
stuck to the price.
2) MIDDLE LINE
We find the middle line by locating the current price, remembering that it does not
it may be very close to the resistance. Normally the current price is
on top of a wick or very close to a wick, this is the wick that
we should mark, when there is no nearby wick it is interesting
choose another parity.
If there are two wicks next to each other, mark the one with the largest.
wick
.......................................... CURRENT PRICE LINE
AND IT IS ALSO OUR LINE OF
MEIO
SUPPORT
To find the support, just make the projection with the vertical line, pull
this line of resistance to the middle line and then to the line of
support at the end of this line, the support line does not need to be in
top of no wick. The small ball of the vertical line should be on top of the
middle line.
RESISTANCE
MIDDLE LINE
SUPPORT
. When to do the marking in M15 and if it is necessary to mark the
resistance in the current candle (this happens after analyzing the historical zone
and not having any place to mark) to make the mark only if the candle
left a minimum wick.
. If it is a RED candle, the wick is at the top.
If it is a GREEN candle, the wick is minimal at the bottom.
The resistance line and the middle line cannot be too much
distanced from each other.
The projection of the lines can be done up to two times, more than that,
It is better to redo the tracing.
Always check in M1 to see if the price isn't too squeezed.
and look in 5s as well.
Avoid hitting PULLBACK in regions that have already been tested a lot.
region.
Test the area not only when it touches the line, but rather when it arrives.
very close to the marked line, both above and below.
OBS Give attention to the drawing because it is a
very important topic!
INPUT TRIGGERS
(ALL ANALYSES ARE DONE IN M1)
1) CHECK THE MACRO TREND
Do it in M1
Zoom out of the chart and analyze if it is in an upward trend or not.
download.
- When the chart is sideways, we take into account the
the last macro trend that occurred before moving sideways
MACRO UPWARD TREND = UPWARD PULLBACK / BUY
MACRO DOWN TREND = DOWN PULLBACK / SELL
2) CHECK THE AREA HISTORY
Check if it is acting more as support or as resistance.
The touches of respect are counted through the wicks that touch the
lines (R, S, and MIDDLE LINE)
Analyze whether the graph rises and falls or if it rises and descends.
If the number of touches is equal for both support and
resistance, mark the one that is breaking less
After analyzing the histories of the areas, change the color of the 3 lines.
Green line for support,
Red line for resistance.
ONLY PERFORM THE OPERATION WHEN THERE IS A CANDLE PEAK
When the candle is born and 'explodes', DO NOT perform the operation, as it is
a power candle.
When the candle is born and slowly seeks the Pullback region, it does not
carry out the operation as this candle does not demonstrate volatility.
CANDLE TIP = the candle goes down and up in a constant motion,
it 'flashes'. This is a wick peak.
DO NOT PERFORM OPERATION WHEN THE BREAKAGE IS WITH
A POWER CANDLE
If it breaks with a strong candle, the ideal is NOT to catch the Pullback,
because normally when it breaks with a strong candle it corrects
with another power candle.
Let it break and take the next entry.
Note: only take Pullback in this situation after analyzing the history of
zone. If you are respecting a lot, it is possible to enter the operation, but
éMUITO ARRISCADO.
5) DO NOT PERFORM THE OPERATION WHEN THE CANDLE BEING SOUGHT
PULLBACK HAS ALREADY REVERTED
If the candle you are looking for the Pullback left a lower wick, it is not
interesting to take the Pullback
.
.
The analysis of the history can vary, some graphs need to be looked at more closely.
backwards, others not so much. Two dragged to the side with the chart
3H is already enough.
TO RESPECT
the price stretches and retracts
(he doesn't keep floating in line) this is
respect the area.
The price does not respect when the candle breaks the line
If the candle only touches the line without leaving a wick, it did not respect the
zone.
-When there is no zone history, do not operate, as this zone will not exist.
respect the Pullback, look for another parity.
analyze the past to 'predict' the future.
MOVEMENTS THAT When she is born and 'explodes' very quickly
WE SHOULD NOT
STICK
When the candle seeks Pullback
leave the wick at minimum
When the sail moves slowly. This movement is not
interesting because it does not show volatility
just demonstrates strength.
Whenever the candle is born and seeks S or R without
MOVEMENTS THAT leave the wick at a minimum.
WE MUST
TO STICK SAILING WAVE MOVEMENT, constant
goes up and down.
The candle that breaks must leave a minimum wick, but the candle that
the Pullback must directly seek the region
without leaving a minimum wick.
FALSE BREAK
Two breakouts in the same area, either one next to the other or
at a certain distance, regardless of whether it left a wick or not.
CONSOLIDATION
When it breaks the same zone several times in a row and the price
lateralizes.
OBS FALSE BREAKOUT AND CONSOLIDATION
We cancel the force candles
GAP
The GAP assists in operations, however, we must identify when it
helps or hinders.
normally the next candle is born at
previous candle closing rate.
the GAP occurs when the candle is formed in
below or above the closing rate of the
previous sail.
when the GAP is above or below the candle
previously we entered into the operation.
when the GAP is born inside the sail, no
we enter the operation.
OBS Breaking with GAP is considered a breach.
Following all the entry triggers, it can
perform the operation.
Only helps when
HIGH GAP a zone for
SUPPORT
PURCHASE
HIGH PULLBACK
LOW GAP Only helps when
the zone for
SELL RESISTANCE
PULLBACK OF
LOW
WHEN WILL A GAP HELP US?
RESPOSTA: QUANDO ELE FOR A FAVOR DO PULLBACK!
MANAGEMENT
Be RESPONSIBLE.
Responsibility generates CONSISTENCY.
Trust the operational, without fear of entering.
There will be WIN and there will be LOSS.. that's what day trading is.
Respect the management.
Focus on evolving, the money comes later.
Search from 3 to 5 % from the profit bank that day
With a R$100.00 bank, the profit will be up to 5 times. %
Base the management on 2x1 (2 win 1 loss)
started the day with LOSS DO NOT TRADE anymore that day.
ex: 3 de%R$100,00= 3,00 TOTAL= R$103,00
2 days: 3 of%R$103.00
3 days: 3 at%R$106.00
and so on...
STOP LOSS= 10 TO THE DAY %
Divide into 2 sessions
5% in the morning
5 % late evening
OBS UNLOCKING THE PSYCHOLOGICAL IS
FUNDAMENTAL TO WORK WITH
DAY TRADER.
HIT THE GOAL, STOP!