Pullback Swing
Pullback Swing buys a dip within an established uptrend, rather than chasing new highs.
Pullback Swing buys a dip within an established uptrend, rather than chasing new highs. It requires three things at once: the long-term trend is up, momentum has cooled off enough to call it oversold, and price has pulled back to one of three classic Fibonacci retracement levels of the recent swing (38.2%, 50%, or 61.8%) - not just "somewhere down," but specifically near a level traders watch for support. It exits purely on momentum recovering into overbought territory.
How it trades
| Ingredient | Meaning |
|---|---|
| Close vs SMA(long) | Is the long-term trend up at all |
| RSI oversold | Has momentum cooled off enough to call this a genuine dip, not just noise |
| FIB(window, ratio) | A Fibonacci retracement level of the last window closes' swing high/low |
| Near-Fib tolerance | Close must be within tolerance% of one of the three ratio levels (38.2/50/61.8%) |
Buy (trend AND oversold AND near any one of three Fib levels):
Close > SMA(long) AND RSI < oversold AND (nearFib38.2 OR nearFib50 OR nearFib61.8)
Sell (only when already in a position):
RSI > overbought
When it works best
Works best in a healthy, established uptrend that pulls back periodically rather than running straight up or chopping sideways - the strategy specifically wants a dip that's deep enough to cool RSI into oversold and land near a recognized support level, while the longer SMA filter keeps it from buying dips in a market that's actually turned down. In a strong trend with no meaningful pullbacks, this strategy sits out entirely (the RSI-oversold and near-Fib conditions never both arise); in a choppy, range-bound market, an SMA that's only weakly trending combined with frequent RSI oscillation can produce a string of shallow, low-conviction entries.
Backtest this strategy yourself
Build these rules on the Free plan, adjust them, and see how they would have traded.