Let’s get straight to answers!
The best time to buy on a Pullback is right at the beginning of a New Wave.
The ideal time is where a new trend, or a new wave 3 or a new wave 5 begins.
How to Buy on a Pullback within a New Wave 3?
Before we answer the above question.
We must first understand What is a NEW Wave 3? The answer is,
The NEW wave 3 will ALWAYS, ALWAYS come out of either
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A Range / a Sideways market
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Trend Reversal
Now…
How to Buy on a Pullback within Wave 5?
Wait for a Setup 1 breakout. Wait for Fresh new peak on AO and then wait for a pullback.
This is The HUNT method. Simple
What if I don’t understand or care about Elliott Wave?
Let’s assume you don’t care about eWave or don’t understand it. Then what?
No problem. This basically means that you want to look for:
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A Range-Bound / Sideways / No Trend Market and then
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Wait for a Breakout and after you see a breakout
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Wait for a Pullback
Trading Pullback within the Setup is Simple
All I have to do is wait for Setup 1 and Trade it. If I want to add on, I will then apply the HUNT Pullback.
If it’s a NEW 3 out of a Sideways Market then Hunt Pullback
Simple simple simple …
Create a universe of 300-500 stocks. Keep them on the list. Watch for their trends.
I want to see a pullback near the fresh cross… Yes, the first and the 2nd pullback.
That’s it. not 5th 4th of 7th pullback. That’s it.
How to time it perfectly on the LOBOT template with 10/20 EMA only?
That’s simple too.
You want to make sure its either a trend breakout (volatility breakout as above) or a reversal.
You want to time your entries on the first and 2nd pullback after the cross of the 10/20 EMA
Examples:
Example 1: NBR
https://www.screencast.com/t/uy0gog3Nf
https://www.screencast.com/t/hgwyEAFYZHc
Example 2: MESA – Cracking Setup (Setup 1 Template)
https://www.screencast.com/t/bw3rVdJl5uR
What’s the Best Pullback Pattern?
There are two types of pullbacks
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Clean 3-5 candle pullback back to 10 ema or the KC Upper Band
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2-3 candle, then a fakeout, but then another 2-3 candle pullback. (creating a b trap and Pc)
The Simple Pullbacks (No Fakeouts)
Example 1.1 KC
Example 1.2 Lobot Template (10/20 Ema)
Example 2.1 – OII
https://www.tradingview.com/x/l8GZwaqg/
Example 2.2 – MIK 2 Candle Pullback
https://www.tradingview.com/x/ETN4v6Kt/
Example 2.3 – Not a correct pattern
https://www.tradingview.com/x/gdwrwkhI/
Example 3. Some good and Bad Ones and How KC Eliminates some trades
https://www.screencast.com/t/45qw9X5ViIvw
The Complex Pullback
Example 1
It was hard to find just one example on the weekly daily charts. Such is the state of the markets these last 12 months.
But it is quite common for lower time frames.
https://www.screencast.com/t/M0gOwWdTQjRi
https://www.screencast.com/t/AyXsYbUh
