Zen Trading Tech

• Lets take pullbacks a little further and build strategies about which ones to enter and which not to.

Previous Video

• Missed the first part? Catch up here:

New Pullback Drills Inspired by Top Trading Mentors

These techniques are inspired by insights from three legendary traders:

• Dr Al Brooks
• Ali Moin-Afshari
• Peter Brandt

Drill 1: Assessing Pullback Distance

Analyze how far the pullback goes against the leg:

• <50%: Urgent—look for continuation in the original direction.
• =50%: Trend is strong; likely to continue.
• >50%: Less urgency; consider a possible channel formation.

Also, a pullback into the lower third of a bull move often signals an upcoming trading range.

Pro Tip: On a day where the whole move is a pullback, keep an eye on buyers below the daily chart.

• Whole day was a pullback – buyers below daily chart

Drill 2: Counting Pullback Bars

Assessing bar count in the pullback provides trend insight:

• 1-2 Bars: Strong trend—ideal for buying at H1 or selling at L1.
• 3+ Bars: Trend weakening; watch for a potential channel or trading range.

Note: Trading ranges rarely get more than 3 consecutive bars without a reversal.

Drill 3: How Many Prior Lows Were Taken Out?

Evaluate the trend’s resilience in a microchannel by counting how many prior lows were breached:

• 1-2 Lows: Indicates normal trending.
• 3+ Lows: Channel or trading range likely forming.

If in a bull trend, notice if it took out a low of a bear bar vs. a bull bar. This detail can add clarity to your entry decision.

Final Thoughts

Mastering pullbacks lets traders fine-tune trade entries. Just as waiting for pullbacks can increase the success rate of breakout trades, assessing them can also improve channel trade entries.

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Let me know in the comments if these drills helped! Thanks for reading!