The lesson on YouTube
Watch. Then work through the idea.
Watch the English lesson first, then use the worked example and quiz below to check the idea. The article is a companion, not a transcript.
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What is actually happening?
A pullback is a move against the recent advance. It may pause, resume or develop into a larger decline. Waiting for a completed return above a pre-defined trigger exchanges an earlier price for additional observable evidence; it does not eliminate failure.
Guided example · Synthetic completed candles · fixed rule
Find the end of the pullback
Hold the reference low fixed; wait for the stated close above the previous candle high.
Restart & example assumptions
Authored synthetic observations, shown in sequence. Every comparison uses only the revealed data. This is a worked learning example, not live prices, broker execution or a profitability backtest. Follow the article’s exact definitions; measurements and pattern names alone do not authorize a trade.
For charts: tap a candle or swing to inspect it; drag horizontally to browse; wheel or +/− to zoom; arrow keys to inspect; Home to restore the step view.
Make the conditions explicit.
Practice only after a completed higher-high / higher-low sequence on a fixed timeframe. Mark the reference low before the pullback begins.
Example rule: after a pullback holds above the reference low, require a close above the previous candle’s high. Consider execution on the next bar only; record the actual available price.
Cancel the setup on a completed close below the reference low, or if no qualifying close occurs within five candles. Protective stop in the example is below the pullback low.
The quoted rules are illustrative research specifications. Parameters are not recommendations and have not been presented as profitable backtest results.
What can this cost?
Use the actual fill, not the trigger price, for sizing and R calculations. If the next bar gaps away, the size or the decision to trade must change.
How the idea can fail.
A qualifying close can be followed immediately by a break of the pullback low. The final guided step includes this failure; it is part of the method, not an exception to erase.
Practical habit
Mark context, trigger and cancel separately. “It looks like a pullback” is not a complete rule.
Go one level deeper
Test the five-bar expiry as a declared parameter on training data, then freeze it before evaluating an untouched period.
Check your understanding
Which price belongs in the risk calculation?
Further reading & boundaries
These examples are original educational exercises. General background: CME Group: position sizing; Fidelity: technical analysis. Neither endorses these example rules. No hypothetical result establishes future profitability.
Editorial revision: 13 October 2026 · Synthetic data · Educational use