PULLBACK ON RESISTANCE📊
A Pullback on Resistance happens when the price breaks above a resistance level, then temporarily returns (pulls back) to retest it before moving higher. This retest is often seen as a confirmation that the old resistance has turned into new support.
Key Concepts:
- Resistance becomes support after breakout
- Pullback shows price stability
- Ideal for entering long trades with reduced risk
- Confirm with volume, candlestick patterns (like bullish engulfing)
Trading Tip:
Use the pullback to enter a trade near the support-turned-resistance zone with a tight stop-loss just below the new support.
