668# Pullback factor indicator

Pullback trading

Submit by Orazio 28/12/2015

Pullback factor indicator is a trading tool for entry in trend with retracement.

Example how to use this indicator.

To identify the trend, use 20 periods moving average and 50 periods moving average.

When the 20 EMA is above 50 EMA the trend is up. Only buy trades.

When the 20 EMA is above 50 EMA the trend is up. Only sell trades.

Buy

EMA20 > EMA 50 - enter a long trade when the Pullback Factor indicator peaks at a level above 1.5. and after come back below the ma.

Sell

EMA20 < EMA 50 Enter a short trade when the Pullback Factor peaks at a level above 1.5.

and after come back below the ma.

Exit position

Set your stop loss at the nearest support or resistance level. And your profit

target would ratio 1:1.2 your stop loss.

In the picture two Profit factor indicator with cloud indicator and cycle indicator.