Entry After An Extended Complex Pullback

 

I don't always time these so well, but this one worked out to be a really nice entry.

So let's check it out and discuss what I'm thinking when faced with a really long extended grinding "will it ever end" pullback.

First the higher timeframe to get some context…

Higher Timeframe 

And now the trading timeframe…

Trading Timeframe 

Let's zoom in a little to see the extended pullback…

Trading Timeframe - Extended Complex Pullback 

These can be really tough to time an entry. Personally, I hate this type of price sequence.

But in this session I got it just right (well… the entry anyway!).

So let's look peek inside the price action via the lower timeframe to see "what I'm seeing" and to discuss "what I'm thinking".

Lower Timeframe - Extended Complex Pullback 

What I'm Waiting For

Entry was achieved via the second scenario – a break of the reverse (lower) trendline which failed to continue lower.

It wasn't a perfect example. I'd ideally like the break to stretch further and to allow room for 1:1 on a snap back to the mean.

Instead the market offered a nice volatility contraction. Too be honest… that's probably even better than what I was hoping for. There was no way I was going to miss this entry!  πŸ™‚ 

Lower Timeframe - Entry

And the outcome… 

Lower Timeframe - The Outcome 

So we didn't catch a major outlier runner with P2. Still… I'm pretty pleased with the entry!

Trade over… confirm flat… clear my mind… focus!

Ready for the next trade! 

Happy trading, 

Lance Beggs


Written by

YourTradingCoach - Admin

5 Comments to “Entry After An Extended Complex Pullback”

  1. jagadeesh says:

    Hi Lance,
    The complex correction has changed the trend definition, ie. Breaking the pivot low and price acceptance in the new region. I would have been waiting for the pullback short if i traded this scrip. Correct me if I am wrong.
    And thanks for the articles. This website is a goldmine for me.. πŸ™‚

    • Lance Beggs says:

      Jagadeesh,

      The swing low which must be broken to change the trend is the one between A and B. The low between B and C does not meet the swing low definition which requires two bars preceding the low with “higher lows”. So I’m still biased LONG. That being said, if you waited for the first SHORT after the pullback you would have done just fine.

      Cheers,
      Lance

  2. Mahesh says:

    Hi Lance,
    In the second image on this page, we have reducing projection from A -> B -> C.
    I am just guessing that point C is near HTF resistance. Now suppose instead of the extended Pullback after point C, suppose there some downmove and the a weaker restest of C, in such case, would you look to fade that weak upmove?
    Or would you still wait for complex pullback?
    And even if you enter such a short, would that be with scalp mindset? What I am thinking is if we are approaching with HTF with weakness, we look for CT trade. In this example, I am not sure if C is near the structure boundary or somewhere inside it.
    Regards
    Mahesh.

    • Lance Beggs says:

      Hi Mahesh,

      The red horizontal line towards the top of the second image is the HTF resistance level. So that shows you how close price was to the level. Although the scale on the RHS is not shown in full, it looks to be about 20 or so ticks still below the level. So no… it’s not really close enough for a TST or BOF style trade.

      As to how I would react in the case of a sign of bearish strength… we’re talking here about a sequence of price action over 18 months ago. So it’s really impossible to say how I would react.

      But as a generalisation if the market had offered a strong bearish drive down from C, then I’d be much more unlikely to look for a complex entry LONG. And much more likely to consider entry SHORT in the event of a weaker retest of C.

      Cheers,
      Lance

Leave a Reply

Message

Please prove you're a person: Time limit is exhausted. Please reload CAPTCHA.