Pullback in an uptrend

The idea

Stocks in strong uptrends rarely go straight up. They push, rest, and push again. A pullback entry buys the rest, near support, so the stop can sit close.

What I look for

• An established uptrend: price above a rising 8 and 21 EMA.
• The prior day closed above the 8 EMA.
• Price comes back to the 8 EMA and holds it. A tight intraday range (a 30-minute squeeze) makes the entry cleaner.
• The broad market isn't fighting it. See the market regime filter.

The trade

• Entry: at or just off the 8 EMA as it holds.
• Stop: under the low of the entry day.
• Exits: first trim around +1R into strength, stop to break-even, then trim at the prior swing high or the top of the range. Trail the rest with a daily close below the 8 EMA.

Variant: the Fibonacci pullback

In a stronger trend, a deeper pullback can be bought at the 38.2% to 50% retracement of the last swing, provided the 21 EMA is still well above the 50 SMA. That cushion is what makes a deeper dip likely to hold. The regime filter explains why.

The evidence

Every trade tagged as a pullback is listed below with its result. The setup earns its place by its numbers, not by how it looks on a chart.