What is a Pullback and how to take advantage of it in trading?

Have you ever bought out and the price dropped right away? It seems like you entered a pullback without knowing it 🔍

The pullback in essence

A pullback is a temporary retracement within a trend. The market breathes. It pauses for a moment. Then it continues on its way 🌊

• Bullish trend: drops a bit, then continues to rise 📈
• Bearish trend: rises briefly and then continues to fall 📉

Experienced traders and pullbacks 🚀

Pullbacks fascinate many experienced traders. They give you a chance to enter at a better price without challenging the main trend. Something quite valuable in this unpredictable market of 2025.

What you gain with them:

1. You avoid buying at highs (! The FOMO doesn't catch you!)
2. You get another chance to enter
3. See if the trend is really strong
4. Your risk/reward ratio improves significantly 💰

Recognizing a pullback in 4 steps:

1. Look at where the main trend is going
2. Wait for it to pull back something ( almost always between 30%-50% )
3. Confirm with volume or candlestick patterns
4. Enter but protect your capital 🛡️

Look at ETH right now. After rising quite a bit, it seems to have pulled back to the 20-day moving average and then continued to rise.

Careful, not every retracement is a pullback 🔄

Sometimes the price not only retraces but also changes direction. If it breaks important support or resistance levels, it may not just be a simple pullback. The difference is not always clear: pullbacks are just pauses, reversals change the entire landscape.

Have you seen any pullbacks in your charts lately? Did you take advantage of it? Waiting for these moments can completely change your trading results. It's not easy, but it's worth it 🌕