Pullback Signal

The Pullback signal analyzes waves where significant volume is spent but minimal price progress is made in a counter direction.

When used with indicators like TCumulativeDelta or TAutoStructure, it can pinpoint powerful trend entry opportunities, especially in overbought/oversold zones.

Signal Legend

PB – Buy Pullback A large amount of volume on a small down wave, with no new low. Indicates selling effort is wasted.

PB – Sell Pullback A large amount of volume on a small up wave, with no new high. Buying effort is absorbed.

How It Works

To trigger an PB signal:

• The pullback wave must be shorter than the previous wave of the same direction
• The volume per unit of price must be greater than the previous wave
• For Buy Pullbacks: the last down wave must close higher than the previous down wave
• For Sell Pullbacks: the last up wave must close lower than the previous up wave

Best Used With

Combine with:

• TCumulativeDelta to validate absorption
• TAutoStructure to highlight demand/supply pockets
• Trend structure (HH/HL or LH/LL) to catch optimized entries

Example 1: /HSI - 3M