# Pullback Signals

## Pullback Signals — Trader's Guide (EN)

> **The heart of the indicator** — A system for catching **post-pullback entries** instead of chasing tops / catching knives. This is the most important feature, read it carefully.

***

<figure><img src="/files/tMoaj8sXlfVRFJyfphIx" alt=""><figcaption></figcaption></figure>

### 1. What is a Pullback Signal?

A **Pullback Signal** appears when **3 conditions align simultaneously**:

1. **Strong momentum has formed** — RSI has touched extreme overbought/oversold within the recent dozens of bars
2. **Price has pulled back to value** — RSI has retraced to the "support" zone (in an uptrend) or "resistance" zone (in a downtrend)
3. **Continuation confirmation appears** — the bar confirms momentum is resuming in the original direction

→ The signal fires **BELOW the bar** (BUY) or **ABOVE the bar** (SELL).

***

### 2. Why "pullback" instead of "breakout"?

| Entry style                | Pros                         | Cons                                     |
| -------------------------- | ---------------------------- | ---------------------------------------- |
| **Breakout (chasing top)** | Early entry on trend kickoff | Heavy stop-hunt risk, weak R:R           |
| **Pullback (waiting)**     | Entry near support, R:R 2-5x | Sometimes you miss the move (late entry) |

This indicator is designed to **trade some timing for better R:R**. You'll miss a few "chase-and-win" moves, but you **won't blow up** during all the "chase-and-lose" ones.

> **Philosophy:** A trade not taken = no loss. A wrong trade taken = real loss. The indicator prioritizes eliminating wrong trades.

***

### 3. Enable & configure Pullback Signals

#### Open Settings → group **Display** → **Entry Signals Mode**

| Option   | Displays     | Use when                                        |
| -------- | ------------ | ----------------------------------------------- |
| **Both** | BUY and SELL | Default — trade both directions                 |
| **BUY**  | BUY only     | Spot crypto / long-term DCA                     |
| **SELL** | SELL only    | Hedging / short-only strategy                   |
| **None** | Disable all  | When you only want to view RSI Band, no signals |

#### Open Settings → group **Advanced signals** → **Timeframe Signals Mode**

This is an **extremely important** setting — it determines which signal type fires:

* **`Current timeframe`** → fires **standard Pullback Signals** on the chart's TF
* **`5m & 15m`, `15m & 1h`, `1h & 4h`...** → fires **Advanced Pullback** with multi-TF confluence

Read more about Advanced Pullback in **ADVANCED\_SIGNALS\_GUIDE\_EN.md**.

***

### 4. Reading signals on chart

#### ▲ BUY (deep green) — BELOW the bar

> **Meaning:** RSI peaked high (OB zone), pulled back to support, now turning up → enter **LONG**.

**Action:**

* Entry: at the close of the signal bar (or market on the next bar)
* SL: below the most recent swing low (3–5 bars back)
* TP1: R:R 1:1
* TP2: nearest resistance zone or R:R 1:2

#### ▼ SELL (deep red) — ABOVE the bar

> **Meaning:** RSI dropped deep (OS zone), pulled back to resistance, now turning down → enter **SHORT**.

**Action:**

* Entry: at the close of the signal bar
* SL: above the most recent swing high
* TP1: R:R 1:1
* TP2: nearest support zone or R:R 1:2

***

### 5. **Built-in filters** — You don't need to worry

The indicator already applies these filters automatically — **no extra work for you**:

✅ **RSI Band cloud filter** — signal only fires when price is on the right side of the cloud (BUY when cloud green, SELL when cloud red) ✅ **Momentum confirmation requirement** — bar must have a "strong body" or RSI rising/falling clearly ✅ **Anti-double-fire** — after firing once, the indicator resets and waits for new conditions (no spam) ✅ **Bar-close only** — no repaint, no mid-bar "phantom" signals

***

### 6. Tips to maximize winrate with Pullback Signals

#### 🎯 Tip 1 — NEVER trade against the cloud

> Green cloud = BUY only. Red cloud = SELL only.

The indicator **already filters** this, but sometimes the cloud is in transition — if you see a signal while the cloud **just changed within 1–2 bars**, **skip it** (wait for stability).

#### 🎯 Tip 2 — Confluence with swing high/low

Enable **S/R Volume Zones** (see SR\_VOLUME\_GUIDE\_EN.md). A signal firing **near a green Support zone** + BUY direction → extremely high probability.

#### 🎯 Tip 3 — Volume Ratio ≥ 1.0x

Check **Info Table → Vol Ratio**. Signal firing when Vol < 0.5x = weak market, skip. Vol ≥ 1.5x = volume confirms, enter confidently.

#### 🎯 Tip 4 — Avoid low-liquidity hours

Forex Asian session (00:00–06:00 GMT) or crypto US-asleep hours (08:00–14:00 GMT) → low volume → poor signal quality. **Trade during prime hours** of that asset.

#### 🎯 Tip 5 — Manual multi-TF check

Before entering, **open one TF higher**. E.g.: trading 1H? Check 4H. If 4H also has the RSI Band cloud aligned → strong confluence.

#### 🎯 Tip 6 — No trades around major news

The indicator does NOT process fundamentals. NFP, FOMC, CPI within 30 minutes → close everything, stand aside.

#### 🎯 Tip 7 — Skip signals during sideways

If the cloud **flips colors every 5–10 bars** → market is chopping → all signals are losers. Stay out.

#### 🎯 Tip 8 — A cluster of signals = super strong trend

If you see **3–5 signals in the same direction within 20–30 recent bars** → trend is "hot" → every subsequent pullback is opportunity.

#### 🎯 Tip 9 — After 2 consecutive losses → take 1 hour off

Signals are bad right now → market context isn't right → don't "revenge trade", wait for the context to reset.

#### 🎯 Tip 10 — Combo with Hidden Divergence

See HIDDEN\_DIVERGENCE\_GUIDE\_EN.md. Pullback Signal + Hidden Divergence in the same direction = **A+ super setup**.

***

### 7. When NOT to take a signal?

#### ❌ Cloud just changed color < 3 bars ago

Cloud not stable → 50/50 odds.

#### ❌ Signal fires near a strong opposing structure

E.g.: BUY signal but a major resistance is just 2-3 bars overhead → poor R:R.

#### ❌ Volume ratio < 0.5x

Market is asleep → price has no purpose → easy random stop-out.

#### ❌ Background coloring shows continuously

Strong red/green background = RSI in extreme OB/OS. Signals firing during this phase are often **dangerous bottom-fishing**.

#### ❌ Signal fires during a big gap / news spike

Bar gaps too large → SL gets jumped → trade with uncontrolled risk.

***

### 8. Trade management

#### After entering

| Situation                      | Action                                  |
| ------------------------------ | --------------------------------------- |
| Price reaches 1R profit        | Move SL to break-even, take 30–50% off  |
| Price reaches 2R profit        | Trail SL behind nearest S/R Volume zone |
| **Opposite signal** fires      | **Close everything** — don't wait       |
| RSI Band cloud **flips color** | Close 50%, trail the other 50%          |
| Price stalls 10+ bars          | Close 50% (liquidity drying)            |
| Major news event               | Close everything (no questions)         |

#### 1% rule per trade

**Maximum risk per trade = 1% of account.**

* $10,000 account → SL must not lose more than $100
* Calculate position size based on SL distance, not fixed dollar amount

***

### 9. Real-world examples

#### A+ Setup (super high winrate)

**Conditions:**

* ✅ Stable green cloud ≥ 10 bars
* ✅ ▲ BUY fires below bar
* ✅ Volume Ratio ≥ 1.2x
* ✅ A Support zone (green "S" box) within < 1% of price
* ✅ Hidden Divergence (green dot) nearby
* ✅ Higher TF cloud also green

→ **Full size, target R:R 1:3**, SL outside Support Zone.

#### B Setup (average winrate)

**Conditions:**

* ✅ Green cloud
* ✅ ▲ BUY fires
* ✅ Volume Ratio ≥ 0.8x
* ⚠️ No nearby S/R Zone
* ⚠️ No Hidden Divergence

→ Enter **half size**, target R:R 1:1.5.

#### C Setup (skip)

**Conditions:**

* ⚠️ Cloud just changed color < 3 bars ago
* ✅ ▲ BUY fires

→ **Skip**. Don't trade.

***

### 10. FAQ

#### Q: Why do I see so few signals?

**A:** This is a **feature**, not a bug. The indicator is designed to **filter aggressively**. If you want more signals, switch to `Current timeframe` mode (standard signals). If still few, the asset may be sideways → switch asset.

#### Q: Do signals repaint?

**A:** **No.** Signals only fire on bar close (`barstate.isconfirmed`). You may see a "preview" during the live bar, but the final signal locks at bar close.

#### Q: Which TF can I use Pullback on?

**A:** All TFs from 1m to Monthly. However **1H–4H is the sweet spot** — best balance of signal quantity and quality.

#### Q: How is Pullback different from Advanced Pullback?

**A:** Standard Pullback = uses only the chart's TF RSI. Advanced Pullback = adds higher TF confluence → fewer signals but higher winrate. Read ADVANCED\_SIGNALS\_GUIDE\_EN.md.

#### Q: Should I combine with other indicators?

**A:** Recommended additions:

* **Volume Profile / VWAP** — confirm value zones
* **Funding Rate** (crypto futures) — if funding extreme + opposing signal → special setup
* **Higher TF EMA200** — only trade in EMA200 bias direction → significant winrate boost

***

### 11. Next steps

* **ADVANCED\_SIGNALS\_GUIDE\_EN.md** — Learn higher-quality Multi-TF Pullback
* **RSI\_BAND\_GUIDE\_EN.md** — Deeply understand the cloud (filter #1)
* **WINRATE\_TIPS\_EN.md** — 12 winrate-boosting golden rules

***

> **Remember:** A signal is a "green light to consider", not a "must-take order". You are still the final decision-maker based on context.


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