Methods of Pull back strategy in Crypto

[gunhell16]

Good day to all my forum members here, Let me share a little bit if I know about how to do a pullback trading strategy and it's also good for beginners here, because it's very simple to do it and even if we already have Another trading strategy is that we can incorporate this so that we don't miss the opportunity of a good trade and we don't just rely on one strategy.

So now let's find out what is Pullback Trading or we can also call it Retracement. Because the price does not run in a straight line, we normally see a pull back. When the market is trending upward there is always a pull back. Let's just remember that this is a battle between Buyers and Sellers. When the buyers side is strong we will see an uptrend and when the seller sides are strong we will see a downtrend.

Because of the uptrend market there is a pullback, because the sellers temporarily have overpower over the buyers.

Every pullback we see is a failed attempt of a reversal.

In this case, we can take advantage if we know how to identify a pullback properly. It depends on the timeframe in which we are trading because that happens in any time frame. So we are looking at 3 key levels to identify the possible pullback. In an uptrend market we are not able to buy immediately before a breakout. So what we do is we wait for a pullback and this often happens at Support and Resistance.



When the market goes uptrend there is always a pullback, but it depends on how strong the trend is. If the trend is very strong, then the pullback is not that deep. And this normal pullback picture that we see does not reach its previous swing low.

In this case, in our example, this is his previous resistance that can serve as support because it has been broken.


So let's see if the price approaches to take a long position. And of course we will not forget our stop loss that has a distance from the support that depends on risk management.

In this case the trend is not in our favor, so it is also important that we know the historical movement of the assets so that we know the precious support and resistance where the price can bounce.

same concept in the short position in the dwontrend market, all we are looking for is the key levels like support and resistance where the price can be rejected. Like the example in the picture below dwontrend market.

We can see here how the previous support that may have become resistance levels is repeatedly rejected.

The good things is we can also do this strategy in the trading range market. As long as the swing Hi-low is far apart to have a chance of profitability.

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[gunhell16]

PART 2 CONTINUATION

Another tool that can be used to anticipate a pull back is the Trendline.




One also serves as Dynamic support and resistance. So there's a possibility that the price will bounce or reject here. A good example is this chart you see. We have an uptrend market and if we notice that the price is bouncing so let's just see how the price pullback.

It is not really necessary for the price to stick to the trendline. Sometimes it doesn't reach or exceeds a little. And depending on the timeframe, if the upward run has been quite long, it is possible that there will be a reversal, so we should also be aware of that possibility.




This is also the strategy for the short position if you notice that price is also rejected on the Trendline. Meaning this can happen again when the price approaches the trendline again, we can put a short position.

If we don't want to use Trendline, we can use Moving Average.

Here we can see the price bounces and is also rejected here. It still depends on the timeframe, what period we set the moving average and also depends on the token in which period it reacts. The movement of the price is sometimes different so we need to double check it. The history of the assets to which the set-up MVA reacts. As in the trendline, the price respects the moving average for an uptrend market, we will just see if it pulls back.

In the same concept with the short position, let's just wait for the price to return to the resistance levels and wait for a rejection.

We can also look for Confluence levels.

In the example image above, we can see that we used a moving average and to strengthen the confirmation, we will also see if that area was previously resistance that can also be support now and it is, that's why if we put a trendline on it there is a possibility of a bounce in that area.

I hope the knowledge I shared with you will help anyone who wants to have an idea of conducting trading activity here in crypto or Bitcoin. And I want you to understand that this is not a perfect strategy because it also fails, so the pullback we expect will not happen, it will lead to a reversal. So our mindset should still be prepared to lose in a trade no matter what strategy we use, the only difference is how we manage it.

[benalexis12]

I just now fully understand the use of trendlines, support, and resistance; I had misunderstood them before. But because of what you explained simply through your illustrations, these things became clear to me. So thank you, friend, for sharing this knowledge with us here in the forum.
This is really a big thing; I just need to practice it in exchange trading so I can see what you are saying. Thank you very much again.

[Hamphser]

I just now fully understand the use of trendlines, support, and resistance; I had misunderstood them before. But because of what you explained simply through your illustrations, these things became clear to me. So thank you, friend, for sharing this knowledge with us here in the forum.
This is really a big thing; I just need to practice it in exchange trading so I can see what you are saying. Thank you very much again.

On the time that these formations had been shown then you do already have the idea on what are the positions that you would really be taking which neither buy or selling position if ever you are doing futures.

Im not really that a fan when it comes to precision of technicals but since we dont really have that choice because not all the time this market does have news or fundamentals and this is why people would be mainly be needing to learn technicals. Price reversals should really be something that we do really need to get  to enter because we would really be able to maximize that profitability if ever the price goes on what we do expect. The only issue or things that you should really be that in concern or would really be doubtful is on the time that breakouts do happen. You would really be thinking that what if the price
would be able to break out and you did make that buy or sell position? For sure it would be a total negative. 

Not all the time that TA would really be that precise but at least you do know on what you are doing in terms of analysis rather than on making yourself that making some price entry guess without
having any basis.

[YUriy1991]

Yes. because we know that there are quite a lot of people who experience failure and trading due to a lack of knowledge and understanding in trading, where in the end the winner is emotion.

Thank you OP, for sharing the Tips and techniques and I'm sure this is based on the results of a study from your previous experience. I really appreciate your efforts. at least this is one of the other good options and can be used in trading for beginners or additional material for those who are advanced too.
     

[bettercrypto]

Yes. because we know that there are quite a lot of people who experience failure and trading due to a lack of knowledge and understanding in trading, where in the end the winner is emotion.

Thank you OP, for sharing the Tips and techniques and I'm sure this is based on the results of a study from your previous experience. I really appreciate your efforts. at least this is one of the other good options and can be used in trading for beginners or additional material for those who are advanced too.
     

Having an understanding of technical and fundamental analysis is really not that easy, and you were right that what Op did here is really helpful to anyone who has zero knowledge of crypto trading. And as I can see, his effort is pretty good, which I appreciate. He detailed each key level for using pullback trading.

And of course, all of this is surely based on his experience too, in which I saw that some of it was true, and I also learned from his experience as well. Perhaps all we can do for now is try to apply those things that we haven't yet, according to what Op shared here. So, I appreciated the effort the author made.

[EarnOnVictor]

As a trading-oriented person myself, I would have given you 3 merits on each part of your article if I were a merit source. This is one of the painful parts here, the trading discussion section still needs merit source, if not sources. I hope @theymos could pay attention to this and understand the reason for having more merit sources (those who truly understand the value trading) here to encourage people to post meaningful trading articles and that can bring about exciting competition. This will also develop others and themselves to earn.

Online learning has helped me to be a stable earner through trading, but without much merit for people's work here, they won't be often encouraged to share the value they know.

As for the subject, you've done well, the market could move towards the trend, retrace, reverse or without a direct (sideways/range). In any of those conditions, what will guide any trader are mainly the price action, trend strategy and the support/resistance strategy used. Also in addition to the trendline strategy mentioned, one could also add the Fibonacci tool and Elliot Wave theory, which are particularly important during the wavy, retracement and indecisive markets like sideways and range.

[Mr. Magkaisa]

        -    It's rare that I see another member here who does such a detailed trading tutorial, let alone the tools used in the actual trading graph on the chart. This is very good educational knowledge he shared about pullback trading using support and resistance, trendlines, and others. If I look at it, he spent some time here to do these initiatives.

Bravo to you, mate. I hope there are other tutorials to share here apart from this one you made. Actually, right here in the trendline that you showed Op, anyone can learn a technique, even a newbie, about making a profit in Bitcoin or crypto trading. It's not hard to understand your explanations here, honestly speaking. Thanks again for the effort you put into sharing what you know about trading.

[STT]

Good stuff, the sell point can be a buy if it should exceed that potential resistance.  ie. comparatively the market is stronger then thought and exceeds resistance.   Its never for certain but I find TA most useful for giving a place and possibly a date for when most to pay attention.
   For example right now we appear to be in some drift sideways, we lack significance or definition.   Im not sure where we will be more active, knowing the direction is almost secondary to being able to identify the trigger point for a move.   Alot  of people go off event news like some dude from the Federal reserve gives a speech, its hard to argue with trillions in command there but my ideal is something more natural developing.  Right now I dont have high confidence except perhaps just by labelling the boundaries of some range, 25k below for example.

[YUriy1991]

Yes. because we know that there are quite a lot of people who experience failure and trading due to a lack of knowledge and understanding in trading, where in the end the winner is emotion.

Thank you OP, for sharing the Tips and techniques and I'm sure this is based on the results of a study from your previous experience. I really appreciate your efforts. at least this is one of the other good options and can be used in trading for beginners or additional material for those who are advanced too.
     

Having an understanding of technical and fundamental analysis is really not that easy, and you were right that what Op did here is really helpful to anyone who has zero knowledge of crypto trading. And as I can see, his effort is pretty good, which I appreciate. He detailed each key level for using pullback trading.

And of course, all of this is surely based on his experience too, in which I saw that some of it was true, and I also learned from his experience as well. Perhaps all we can do for now is try to apply those things that we haven't yet, according to what Op shared here. So, I appreciated the effort the author made.

At least in the coming 2024, no more traders will experience losses of up to 20-30% of the initial funds that came in, even though the possibility is small, at least they will become more adept at reading the market. I present this because currently looking for money and putting it into crypto investments is very difficult where fulfillment of needs is also increasing due to increasing prices for daily necessities and the income that we can get for saving and setting aside for investment is too little. Yes. I am also very affected and feeling this year.

[bestcoins1]

At least in the coming 2024, no more traders will experience losses of up to 20-30% of the initial funds that came in, even though the possibility is small, at least they will become more adept at reading the market. I present this because currently looking for money and putting it into crypto investments is very difficult where fulfillment of needs is also increasing due to increasing prices for daily necessities and the income that we can get for saving and setting aside for investment is too little. Yes. I am also very affected and feeling this year.

The OP has outlined a pretty good strategy here that you and everyone else can see and implement according to the amount of skill you currently have without interfering with your own course of life. Because investing will be more comfortable if it is done with free funds that have nothing to do with other needs in personal life and I also hope about improvements that can occur in the future so that more new traders in the crypto space are born with their interest in the potential profits that can be they get.

[OgNasty]

While trading strategies may help you make some money with trading, it’s somewhat important to remember that Bitcoin’s price increases over the years have been that of legend. The only way to not win when it comes to investing in Bitcoin is to not be in the game. So be careful about selling and missing out on massive gains by trying to make short term profits.

[YUriy1991]

Good stuff, the sell point can be a buy if it should exceed that potential resistance.  ie. comparatively the market is stronger then thought and exceeds resistance.   Its never for certain but I find TA most useful for giving a place and possibly a date for when most to pay attention.
   For example right now we appear to be in some drift sideways, we lack significance or definition.   Im not sure where we will be more active, knowing the direction is almost secondary to being able to identify the trigger point for a move.   Alot  of people go off event news like some dude from the Federal reserve gives a speech, its hard to argue with trillions in command there but my ideal is something more natural developing.  Right now I dont have high confidence except perhaps just by labelling the boundaries of some range, 25k below for example.

That's right, market price movements, whether up or down, are slight many are also influenced by market sentiment, for example, yesterday BTC rose $ 27,600 after Grayscale won a lawsuit against the SEC. This means that many investors who don't want investments placed on a platform have problems with SEC institutions.

The OP has outlined a pretty good strategy here that you and everyone else can see and implement according to the amount of skill you currently have without interfering with your own course of life. Because investing will be more comfortable if it is done with free funds that have nothing to do with other needs in personal life and I also hope about improvements that can occur in the future so that more new traders in the crypto space are born with their interest in the potential profits that can be they get.

You are right, we should be wise in managing it, me or others. Currently BTC is one of the choices and answers of all current investment assets that are trusted, safe and comfortable to invest in and it's not too late at all.

[rhomelmabini]

Well, this one is likely just a fundamental strategy but simple and not too complicated strategy is the best strategy. This one still involves the art of patience and it's always gonna be the key to be successful even on investing. This is one of the ELI5 thread I've encountered by far and thanks for sharing it here, it will be of use for those newbies who want to start their trading journeys.

[flyingcarpet]

Well, this one is likely just a fundamental strategy but simple and not too complicated strategy is the best strategy. This one still involves the art of patience and it's always gonna be the key to be successful even on investing. This is one of the ELI5 thread I've encountered by far and thanks for sharing it here, it will be of use for those newbies who want to start their trading journeys.

Everyone has a strategy. There are many strategies that have been said, and the common point among them is "patience". If you know how to be patient, you have a chance to earn income even with basic strategies like this.

Knowing to wait leads us to gain. Patience is required to make the right moves in the right place. That's one of the biggest things this market has taught me.

[hatshepsut93]

It's easy to identify these pullbacks in hindsight, but how can you tell a pullback from a trend reverse just when it's happening?  Typically a market trend will have a lot of these pullbacks, some big, some small, but sooner or later an actual trend reversal will come, and if you will bet on it being a pullback, you will suffer a loss. And the more stubborn you will be, the bigger your loss will accumulate.

[karabiber]

If i talk about the moving average in Part 2, the moving averages show the general direction of the trend. But the only drawback of these indicators is that they cannot catch the price changes. When using a moving average, longer analyzed period, shorter moving average should be selected. Shorter selected period, faster moving average reacts to price changes. If the selected time is too large, the indicator may give too many false signals.
When interpreting moving average, current trend is likely to continue as long as prices are above or below the average. When the price line breaks average, probability that trend will change in the opposite direction becomes stronger if the closing prices cross average line.

[Fatunad]

If i talk about the moving average in Part 2, the moving averages show the general direction of the trend. But the only drawback of these indicators is that they cannot catch the price changes. When using a moving average, longer analyzed period, shorter moving average should be selected. Shorter selected period, faster moving average reacts to price changes. If the selected time is too large, the indicator may give too many false signals.
When interpreting moving average, current trend is likely to continue as long as prices are above or below the average. When the price line breaks average, probability that trend will change in the opposite direction becomes stronger if the closing prices cross average line.

This is where Biases on different timeframe should be checked because if you do only focus on a single time frame and doesnt tend to check out for some confirmation on other TF's then it wont really be that something valid or something that would really be accurate.

Some example:
The signal to sell is confirmed when the medium moving average crosses below the slow moving average, the shift in momentum is considered to be more significant when the medium (20 day) moving average crosses below the slow (30 day) moving average.Source link

Pullbacks and bounces are the main things that we would really be that aiming which it would really be leading to find out the bottom and the peaks.
This is where those indicators and tools which would really be relevant on doing that.