Pullback Viewer is designed to show valid pullback points in a
bearish
or
bullish trend.
What is considered a valid pullback?
A valid pullback needs to have a body close outside the previous candle high (in a
bearish trend
) or previous candle low (in a
bullish trend
). If the candle wicks out the previous candle, it's not a valid pullback.
Pullback must liquidate the previous candle with a clean candle body close.
When is this indicator useful?
It's useful to understand and spot potential key levels, where you can expect the reaction of the price.
Examples how you can use valid pullbacks:
Identify
supply and demand
zones
Spot key levels for
support and resistance
Use as anchor points for
trendlines
This indicator is a valuable guideline to spot the important swing points in trending markets.
Timeframes and symbols
Pullback viewer can be used regardless of the timeframe you are using, or symbol that you are trading.
