Buy Setup

Look for a pullback of roughly 50% of the previous upward move.

Use a minimum of three lower-high candles, with each successive peak below the previous candle’s high.

Avoid a single oversized candle, a shallow two-bar pause, or choppy action that breaks prior highs before the setup is complete.

Price pulls into a rising 20-period moving average and begins to play off it.

A trigger far above the 20MA can mean the correction is not finished.

A drop too far below the 20MA suggests the move is failing rather than correcting cleanly.

A correction can retrace the full prior move. Treat it as higher risk and wait for a secondary entry to confirm that the move is holding.

After an opening move or a large gap, price may bounce just above the average while the rising 20MA catches up.

A pullback can erase half the prior move in only three bars. It can remain viable if the pivot holds and the 20MA catches up.