## Pullback and Throwback: A Guide for Traders Looking for Good Entry Points

If you've ever been confused about what to do when the price pulls back to test support or what a throwback in an uptrend means, you're not alone. Many beginner traders often confuse Pullback and Throwback with Reversal Patterns, which look similar but give different signals on the downside.

In reality, Pullback and Throwback are gifts for traders seeking good prices because they offer opportunities to enter before the price continues in the same trend. This article will explain what pullback and throwback are and how to use them in trading.

## Price Pullback: Origin and Meaning

**Pullback and Throwback** are slowdowns in price movement that occur within a clear trend. The price will retreat slightly and then resume the original trend. They are not true (Reversal) because the main trend remains intact.

The difference between the two is quite simple:

- **Pullback** occurs in a downtrend. The price bounces up for a while but does not break through a significant resistance, then continues to create a Lower Low (new low).

- **Throwback** occurs in an uptrend. The price dips for a while but does not go beyond the support level, then resumes to create a Higher High (new high).

Why does this happen? Because when the price moves strongly in one direction, traders who have held positions from the start tend to lock in profits. Some sell, causing a correction. But since it's only partial selling, the trend remains unbroken. Soon, new buyers step in, pushing the price back in the original direction.

This is the moment traders want for a better entry.

## Pullback/Throwback vs. Reversal: Don't Get Confused

What often causes unsuccessful use of Pullback and Throwback strategies is confusion with Reversal Patterns. Both look similar but have completely different outcomes.

**Signs to distinguish them:**

**1. Behavior of Support/Resistance Levels**

Pullback and Throwback do not break support or resistance. They only test and then bounce back. If the price manages to break through support or resistance (especially if with strength), then it is a Reversal.

**2. Trading Volume (Volume)**

Pullbacks and Throwbacks usually occur with low volume. They are just short pauses. Reversals are often confirmed with higher volume. If during the reversal volume spikes, that indicates it’s not just a Pullback or Throwback.

## 4 Practical Ways to Trade Pullback and Throwback

### 1. Trading on Breakout Points

When the price breaks through a support or resistance level, it often pulls back or throws back to test that level again. This is a good entry point.

How to do it: Wait for the price to break out, then wait for a Pullback/Throwback to test the same level. Enter a new position at that point. Set Stop Loss at the lowest point of the breakout candle.

### 2. Ladder Trading Pullback/Throwback

In a clear trend, the price will go up and down, creating Higher Highs and Higher Lows in an uptrend, or Lower Highs and Lower Lows in a downtrend.

How to do it: In an uptrend, find support at the previous high, where the Throwback tests. That’s your buy entry. In a downtrend, use the previous low as resistance. For a sell entry, set Stop Loss if the price breaks below that support/resistance.

### 3. Using Trendlines (Trendline)

Pullbacks and Throwbacks often test trendlines, whether drawn manually or using Moving Averages.

How to do it: In an uptrend, wait for the price to bounce up and test the trendline acting as support. If it bounces up, that’s a Throwback to buy. In a downtrend, wait for the price to Pullback up to test the trendline acting as resistance. That’s a good sell entry. Set Stop Loss if the price breaks through that level.

### 4. Fibonacci Retracement for Range Estimation

In strong trends, the size of Pullbacks and Throwbacks usually does not exceed 23.6%, 38.2%, or 50% of the previous move.

How to do it: For an uptrend, draw Fibonacci from the low to the high. If the Throwback does not exceed 50%, it’s a strong Throwback, a good entry point. For a downtrend, draw Fibonacci from the high to the low. If the Pullback does not go beyond 50%, consider it a good sell zone. Set Stop Loss if the price seems likely to break above 50%.

## Summary: Pullback and Throwback Are Your Opportunities

**Pullback and Throwback** are temporary slowdowns in price that continue the existing trend. They are not Reversals that change the direction. And that’s a good thing because they give you opportunities at better prices, with low Stop Loss, and favorable Risk/Reward ratios.

Understanding Pullback and Throwback correctly and combining them with Trendlines, Support/Resistance, Fibonacci, or other tools will help make your trading more accurate and consistent. Try applying these strategies in your trading and see how much they can improve your results.