Co.EMA.Pullback

This is a super simple pullback setup that works in any timeframe and market. You just have to be patient and wait for the setup to play out.

Introduction

Patience is a core stone in successful trading and this strategy is all about patience. You really have to wait for the setup to play out. However, if you do, you are going to find great pullbacks in any time frame and market.

Add a simple EMA to the chart.

Add Confirmation (Expo) to the chart.

Trading Setup

Long

The Confirmation indicator has been blue and 1) starts to turn red, the confirmation bars are above the value 0 while shifting to red, 2) if the confirmation bar turns back to blue, enter long. You have then identified a potential pullback and the positive trend will continue.

Targets and stop loss

Use risk-reward and set the stop loss below the pullback low.

Short

The Confirmation indicator has been red and 1) starts to turn blue, the confirmation bars are under the value 0 while shifting to blue, 2) if the confirmation bar turns back to red, enter short. You have then identified a potential pullback and the negative trend will continue.

Targets and stop loss

Use risk-reward and set the stop loss above the pullback high.

Indicators Settings

EMA

Add a simple EMA to the chart, set the length to 20.

The EMA length determines the trend. If you set the EMA length to 20 you are going to identity medium-term trend pullbacks. If you set it to 50 you're going to identify long-term trend pullbacks.

Basically, a higher EMA value returns the long-term trend. A low EMA value returns the short-term trend.

Confirmation (Expo)

Add Confirmation (Expo) to the chart.

1) Set the EMA as an input source for the Confirmation (Expo) indicator.

2) Set the style to "Columns" and change the color to whatever you want.

Settings tips

• The EMA length has the most impact on the calculation. So if you want to find short-term pullbacks use a shorter ema length. If you want to find long-term pullbacks use a longer ema length.

• If you want to make the Confirmation indicator more sensitive, you can decrease the Trend Length. A more sensitive confirmation indicator identifies pullbacks earlier.