Trading on pullbacks.
Almost every second article on Forex trading recommends trading with the trend, since trend trading is less risky.
But for some reason, instead of the promised profit, the trader only receives stop losses; as soon as a new deal is opened, the trend immediately rushes in the opposite direction, and suspicions immediately arise about the dishonesty of the Dealing Center.
But there is no crime in such a phenomenon, since we are talking about ordinary rollbacks or trend corrections.
Why do most authors so persistently recommend opening trades with the trend? Because their articles talk about trading on medium and long-term time frames, and most traders conduct intraday trading using fairly large leverage.
Therefore, stop losses are set as close as possible to the current price, which causes them to be triggered frequently.
What to do if you don’t want to change transaction volumes? - Try trading on pullbacks.
Trading on pullbacks is a fairly well-known tactic that allows for a more guaranteed profit in short-term trading, often used in scalping .
What is the essence of such tactics?
Everything is quite simple - first we determine the current trend, then wait for the correction and open a short-term trade in the opposite direction. In this case:
Entry points will be the reversal points at the support or resistance line, signals from the stochastic indicator .
The deal is held taking into account the average duration of pullbacks for today, upon reaching the support or resistance line, when moving along the trend.
Usually, when using this tactic, it is rarely possible to make a profit of more than a few tens of points on M1 and just a couple of points, but as a rule, the number of successful transactions becomes much larger.