What is the Breakout Pullback Strategy?
The Breakout Pullback strategy aims to enter trades after a key resistance level has been broken and retested. Rather than chasing the breakout, traders wait for a pullback to that level to confirm it as new support.
This strategy offers a safer way to ride momentum without falling into bull traps or buying extended moves.
Ideal Conditions
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Clear horizontal breakout level
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High relative volume on breakout
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Clean pullback to the breakout zone (no chop)
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Uptrend or bullish macro context
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15-min, 1-hour, or daily chart preferred
Entry Signals
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Price retests breakout zone and holds
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Bullish reversal candle at support (hammer, engulfing)
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Confirmation volume on bounce
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Trend continuation signs (higher lows, reclaim of EMAs)
Exit Strategy
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Next resistance or previous high
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Risk:Reward of at least 2:1
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Stop placed just under the pullback low
Risk Management Tips
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Wait for confirmation, don’t anticipate
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Use clean levels from higher timeframes
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Avoid chop zones or crowded trades
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Trail stop once price reclaims breakout highs
Suitable Market Types
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Mid/large caps with trend continuation
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Breakouts on strong earnings or news
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Sector momentum plays
📘 Strategy Type: Trend Continuation / Technical Breakout
📈 Example Use in Newsletter
Category: 🔥 High Volatility Movers
Strategy: Breakout Pullback
Get daily setups for this strategy here
📊 Related Concepts
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Breakout + Retest
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Trend Continuation
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EMA Reclaim
🔎 Related Strategies
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Momentum Play
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Gap & Go
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Red to Green Reversal