#MarketPullback The pullback warning indicator is a simple indicator that highlights the potential for a market pullback by measuring the distances between certain key moving averages.

John Pocorobba recently shared in his general market updates research showing that when the distance between the closing price and the 9-day exponential moving average is greater than the distance between the 9-day exponential moving average and the 20-day exponential moving average, a pullback is likely to occur.

John Pocorobba recently shared in his general market updates research showing that when the distance between the closing price and the 9-day exponential moving average is greater than the distance between the 9-day exponential moving average and the 20-day exponential moving average, a pullback is likely to occur.

John Pocorobba recently shared in his general market updates research showing that when the distance between the closing price and the 9-day exponential moving average is greater than the distance between the 9-day exponential moving average and the 20-day exponential moving average, a pullback is likely to occur.

While this condition occurs frequently, I added sensitivity options to try and filter out the noise. Sensitivity is based on the extent of the closing price from the 50-day simple moving average. Depending on your sensitivity level, only signals that occur when the price extends 5, 6, or 7 percent from the 50-day simple moving average will be plotted.