The strategy of buying on a pullback after a breakout refers to the price breaking through the middle band of the Bollinger Bands, then pulling back and being supported again by the middle band. We can use the support of the Bollinger Bands' middle band as the basis to enter a long position.
When the price breaks upward through the middle band of the Bollinger Bands, it indicates strong momentum; if the price strongly breaks the middle band and pulls back without breaking it, it means that strength is increasing. This is the best time for investors to enter a long position, especially when the price crosses above the middle band, and if the trading volume also increases, the success rate is even higher.
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The contract price has been operating between the upper and lower bands of the Bollinger Bands, with the price dropping to a low of 1926.5 points before breaking through the middle band. As mentioned earlier, when the price breaks the middle band, it's best if the trading volume also increases, as this greatly increases the likelihood of an upward move after the breakout.
After breaking the middle band, the price consolidated horizontally, consistently supported by the middle band (at the circled area). When the price again pulls back with reduced volume and stabilizes near the middle band, this is the best time for investors to enter a long position.
After the price is supported by the middle band, it surged to the upper band, and the pullback continued to be supported by the middle band (at the boxed area). This is the time to increase positions. After entering a long position, as long as the price stays between the upper and middle bands, and the upper and lower bands of the Bollinger Bands start to open up, this long position can be held continuously.