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A two-legged pullback to the 20-period exponential moving average is a 😳 high probability trade entry set up inside a strong uptrend for buying a dip in price action. What??? It can also be a short selling opportunity on a rally back to the 20-EMA during a downtrend in price action. Any candle that goes higher than the previous candle begins a new leg up in price. Makes sense? Any candle that goes lower than the previous candle begins a new leg down in price. Trading rules for the two-legged pullback to the 20-EMA Dip buy signal · Strong uptrend · Two-legged pullback down to the 20-EMA · Enter at the close of the candle that bounced back from the 20-EMA Easy, right? And what about the short signal? Short sell setup signal · Strong downtrend · ...
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