Pullback vs. Reversal: Which One Is Better?
Hello traders,
Should you follow the trend with pullbacks or go for trend reversals for better trading results? Many traders will say pullbacks. Why?
As you can see in the image, when a downtrend reverses to an uptrend:
• If you trade based on trend reversals, you only have 1 area to look for reversal signals. This means you have just one chance to pick the right signal, making the odds of winning quite low.
• If you trade based on pullbacks, each uptrend or downtrend offers multiple pullback points, with up to 6 pullback positions available for trading as shown in the image. This increases your chances of winning with each trade.
So, it could be much easier to catch a pullback than to pinpoint the exact reversal point.
Although trading on reversals can yield higher rewards, many traders still prefer the pullback strategy because it’s safer and has a higher win rate.
To help you with the strongest pullback signals, we’ve gathered a list of our most popular products for trading with the pullback strategy.
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