Confusion exists regarding pullback strategies. Many people on YouTube and other “sources” will discuss using RSI or CCI or Stochastics or any number of indicators to assist in pullbacks.
One strategy that I like which was shown to me is known as the 9/30 pullback strategy and it is very simple. To state once again, this is best used to determine PULLBACK entries.
Indicators:
9 period EMA
30 period WMA
Rules: The rule generally takes effect AFTER a close between the 9 EMA and 30 WMA occurs.
LONG: When in an uptrend, prices have been trading above both MAs and the 9 is moving above the 30.
1. After a close between the 9 EMA and 30 WMA.
2. Place a buy entry above the high of the bar that closed in between the two MAs.
If a trend pullback occurs, when the price moves back ABOVE the high of the bar that first closed inside the “neutral” area, then you are in.
SHORT: When in a downtrend, prices have been trading below both MAs and the 9 is moving below the 30.
1. After a close between the 9 EMA and 30 WMA.
2 Place a buy entry below the low of the bar that closed in between the two MAs.
If a trend pullback occurs, when the price moves back BELOW the low of the bar that first closed inside the “neutral” are, then you are in.
STOPS:
Suggested stop placements.
LONG: 1.5x ATR below the entry bar.
SHORT: 1.5x ATR above the entry bar.
CONSOLIDATION:
If in consolidation WHEN the close between the MAs occurs. Then consolidation entry rules apply.
Orion Price Prophet 