Pullback: The Secret That Traders Who Make Money Recognize

I bought at the top and nailed it… but wait, what if that “market punishment” was actually my best entry?

The truth about pullbacks:

In an uptrend = a dip that offers a better price
In a downtrend = a small rebound before continuing to fall

Here’s the magic: while 80% of beginners get scared and sell in red, savvy traders recognize the pullback and buy cheaper without going against the trend.

How to spot them in 4 steps:

1. Confirm the main trend (Is it up or down?)
2. Detect a minor retracement (30%-50% of the last move)
3. Wait for confirmation (Low volume + reversal candles)
4. Enter with a stop loss and clear risk/reward ratios

The danger: Not every retracement is a pullback. If it breaks strong support/resistance, the game has changed. That’s when the price is signaling “I’m moving to the other side.”

Did you spot a real pullback? Did you take advantage or get scared by the red? Share your experience in the comments 👇