Profits from entering established trends during temporary retracements
| Strategy Type | Trend Continuation / Pullback Entry |
| Market Outlook | Profits from entering established trends during temporary retracements |
| Risk Profile | Low to Moderate - trading with trend reduces risk |
| Reward Profile | Consistent returns from trend continuation (20-40%+) |
| Time Horizon | Short to medium-term (days to weeks) |
| Iv Environment | N/A - pure price-based strategy |
| Breakeven | Depends on trend strength and pullback quality |
| Primary Instruments | US stocks via CFDs, S&P 500 E-mini, NASDAQ 100 E-mini, Forex, Commodities |
| Mas Compliance | MAS regulated brokers required for CFD/futures trading |
| Trading Hours | Multiple sessions - US 9:30 PM - 4 AM SGT, Asia 8 AM - 4 PM SGT, Europe 3 PM - 11 PM SGT |
| Contract Size | E-mini S&P: USD50 per point; Forex: varies by pair |
| Settlement | Cash settled for CFDs and futures |
| Tax Treatment | No capital gains tax for individuals in Singapore |
| Margin Requirements | Standard CFD/futures margin |
| Cdp Account | Not required for CFD/futures |
| Singapore Relevance | Pullback trading works across all markets - Singapore traders can find entries in trending markets during any session |
A pullback is a temporary price movement against the prevailing trend. In an uptrend, price briefly declines before continuing higher. It offers a chance to enter at better prices.
Pullback trading is with the trend, which has higher probability. You get better entry prices than chasing, defined risk at pullback extreme, and let established momentum work for you.
Key levels include: Moving Averages (20, 50, 200), Fibonacci retracements (38.2%, 50%, 61.8%), and price structure (prior swings, breakout levels).
Look for entry triggers: reversal candlestick patterns (hammer, engulfing), break of minor pullback structure, or momentum indicators turning back in trend direction.
Place stop beyond the pullback extreme with a small buffer. For uptrend pullback, stop below the pullback low. If that level breaks, the pullback may be a reversal.
Confluence is when multiple factors align at the same level - such as 50 MA, 50% Fibonacci, and prior structure all at the same price. This significantly increases probability.
Statistically, 38-50% retracements offer the best probability (around 65% win rate). Shallower may not give good entry, deeper (62%+) risks becoming a reversal.
Use ADX (above 25 = trend, above 40 = strong), MA slope (steeper = stronger), and price structure (clear higher highs/lows or lower highs/lows).
A flag is a parallel channel pullback sloping against the trend. Bull flag slopes down in uptrend, bear flag slopes up in downtrend. Enter on break in trend direction.
Identify trend on HTF (daily/weekly), find pullback on trading TF (4H), and time entry on LTF (1H). This gives better entry with HTF trend support.
Detect trend using MA and ADX, identify swing points, calculate retracement depth, check proximity to key levels (MA, Fib, structure), score by confluence and quality.
Optimize on training period (2 years), test on subsequent out-of-sample (6 months), roll forward and repeat. Validates parameters work consistently on unseen data.
Single factor: 55-60% win rate. Double confluence: 65-70%. Triple confluence: 75-80%. Each additional aligned factor adds approximately 10% to win rate.
High volume absorbed at support (sellers absorbed), OBV rising or holding during pullback, visible block trades at level, dark pool activity at support.
Stream price data, maintain trend status per instrument, pre-calculate key levels, detect pullbacks reaching levels, check for entry triggers, generate prioritized alerts.
Full guided lessons, quizzes, and a complete strategy library for the Singapore market. One-time purchase. No subscription, ever.
Get Singapore access →