Trend pullback
Worked example: 50 EMA swing pullback. Freeze these rules before replay, then record every eligible signal—including the ones you skip.
- CHART
- H1
- CLOCK
- UTC
- DECISION
- Completed candles only
Build the same chart
Market scope
- EUR/USD and GBP/USD only; H1 candles stamped in UTC; long and short rules are mirrored.
- All decisions use the last completed H1 candle. The example feed is treated as midpoint OHLC unless Bid/Ask data is available.
- This is a fixed educational specification for replay comparison, not a recommended parameter set.
Settings
- Add a 50-period EMA of close and Wilder ATR(14). Load at least 100 completed bars before classifying a setup.
- Define a confirmed swing high as a high greater than the two highs on each side; reverse for a swing low. The two right-hand bars create a two-bar confirmation delay.
- Mark the latest confirmed trend-direction swing and the pullback extreme; never move either mark after the trigger bar closes.
Check eligibility first
- Long: the two latest confirmed swing highs and swing lows are both rising and the signal close is above EMA(50); reverse every comparison for a short.
- The pullback must touch or cross EMA(50), last no more than eight completed bars, and must not close beyond the prior confirmed trend swing low/high.
- The distance from the proposed entry to the prior trend extreme must be at least 2R; reject signals within 60 minutes before or after a scheduled high-impact event for either currency.
Wait for the close
The two latest confirmed swing highs and lows are rising and the close is above EMA(50). A pullback of no more than eight bars touches or crosses the EMA without closing below the prior swing low. Enter next H1 open after a close above the highest high of the previous two pullback bars.
The two latest confirmed swing highs and lows are falling and the close is below EMA(50). A pullback of no more than eight bars touches or crosses the EMA without closing above the prior swing high. Enter next H1 open after a close below the lowest low of the previous two pullback bars.
Stop and invalidation
Place the stop 0.25 × ATR(14) beyond the pullback extreme. Size so entry-to-stop risk equals 0.50% of demo equity, rounded down to 0.01 lot; never widen the stop.
Never widen the stop to keep a losing idea alive. Recalculate size from the actual entry-to-stop distance before entry.
No-trade filters
- Swing structure is not ordered, the pullback exceeds eight bars, or price closes beyond the prior trend swing.
- The prior trend extreme does not leave at least 2R of room from the proposed entry.
- A high-impact event for either currency is within 60 minutes before or after the signal.
- The setup does not trigger within two bars or the next-open gap exceeds 0.50 × ATR(14).
Choose before entry
This card's fixed method
Place a fixed target at 2R immediately after entry. If neither stop nor target trades first, exit at market after 24 completed H1 bars.
Test separately—never mix mid-trade
- Separate variant only: replace EMA(50) eligibility with a 20/50 EMA alignment rule.
- Separate variant only: trail behind confirmed swings instead of using the 2R target.
- Separate variant only: allow a limit order at a 50% retracement; do not mix its fills with this next-open method.
Match the setup
Open a H1 chart and add EMA(50), ATR(14) from Insert or Navigator with the exact inputs above. Draw required price levels before the reaction and check external filters separately. MT4 and MT5 candles use broker-server time, so verify that their H1 bar boundaries match this card's UTC candles before comparing results.
Open a H1 chart and add EMA(50), ATR(14) from Insert > Indicators or Navigator. Match applied price and Wilder periods, then make decisions from completed candles only. MT4 and MT5 candles use broker-server time, so verify that their H1 bar boundaries match this card's UTC candles before comparing results.
Set the chart to H1, add EMA(50), ATR(14), and match the feed and inputs. Display UTC and confirm that the selected feed uses the same H1 bar boundaries. In Bar Replay, write the decision before advancing.
Before placing a demo trade
Frozen replay costs
Replay with a constant 1.0-pip Bid/Ask spread and 0.1-pip adverse slippage on entry and exit; commission is zero and 0.5 pip is deducted at each rollover crossed.
Practice template only—not a live trade signal or proof the method works. Test plenty of charts, including signals you skip.
Guided practice: https://wickatlas.com/tools/forex-trading-simulator?strategy=trend-pullback&coach=1&preset=ema-pullback-close#guided-replay