Trading Guide · Pullback Entries · Swing Momentum

Martin's Pullback Technique

A structured approach for entering strong stocks after they pull back into support, confirm an intraday reversal, and offer a tight, clearly defined stop.

The core setup

The technique begins with a stock that has already shown strength. The entry is planned around a pullback into a recognised support area, preferably where several support references overlap. The trade is taken only when price confirms that support intraday and the stop can be placed close to the entry.

Strong prior move Theme leadership 9/21 EMA support Anchored VWAP Prior pivot level 1m/5m reversal trigger Tight stop

Operating profile

0.25–0.5% Typical account risk per trade

1–3% Preferred stop distance when the chart allows

3R–5R Common area for partial profit-taking

1. Market and watchlist context

Prepare before the entry

Market condition

The technique works best when leading stocks are respecting rising moving averages and continuing higher after shallow shakeouts. Index health, breadth, sector participation and recent trade feedback decide how aggressively the setup should be traded.

Broad indices are above key rising averages.
Growth leaders are holding the 9 EMA, 21 EMA or 50 EMA.
Breakouts may be choppy, but support tests are being bought.
Recent trades are moving away from entry rather than reversing immediately.

Watchlist source

Pullback candidates come from stocks that have already earned attention. The focus is on names with evidence of strength, liquidity, relative momentum, fresh catalyst behaviour, or theme leadership.

Recent episodic pivot names.
High relative volume movers.
Strong sector or theme clusters.
Stocks riding rising 9/21/50 EMAs.
Names that have broken out, paused, and returned to a key level.

Preparation rule

Every candidate should already have a reason to be on the watchlist before the pullback appears: catalyst, strength, theme, relative volume, trend, or leadership.

2. The pullback zone

Support confluence

The pullback zone is the price area where the stock should find support if the trend remains healthy. Martin's process prioritises levels that other traders are also likely to recognise. The best zone is where several references cluster together.

Support reference	What it shows	How it is used
Daily 9 EMA	Short-term momentum support	Useful in very strong trends where price is riding the fast average.
Daily 21 EMA	Intermediate pullback support	Useful when the first sharp move has cooled and the stock is resetting.
Daily 50 EMA	Deeper trend support	Useful for larger bases, deeper shakeouts, and first tests after a major move.
Anchored VWAP	Volume-weighted reference from a major pivot	Anchored from swing highs, swing lows, gap days, or major reversal candles.
Prior swing high	Old resistance becoming support	Useful after a break-and-retest pattern.
Prior swing low	Visible invalidation area	Useful for defining the level where the setup has failed.
Gap level	Reference from a high-volume catalyst day	Useful when a catalyst move creates a clear support shelf.

Single-level pullback

A pullback into one moving average or one prior pivot. Tradable when the stock is very strong and the trigger is clean.

Confluence pullback

A pullback into two or more overlapping references, such as the 21 EMA, anchored VWAP and a prior breakout level.

First retest

The first return to a major support area after a breakout, gap, reversal, or high-volume pivot.

3. The intraday trigger

Confirmation before entry

The trigger confirms that buyers are responding at the pullback zone. The stock may flush into support during the first 30–60 minutes, undercut a short-term low, stabilise, and then reclaim an intraday level. The entry is taken when the reversal is visible and the stop can be placed beneath the failed breakdown.

Price reaches the planned support zone

The stock pulls into the daily moving average, anchored VWAP, prior pivot, gap level, or a cluster of these levels.

The stock flushes or undercuts intraday

Early selling tests the level. The low of day, entry candle low, or prior low becomes the potential invalidation point.

Price stops falling

The stock begins to hold above the support area. Selling pressure slows and a short-term pivot forms.

The reversal level breaks

The entry can be triggered by a 1-minute or 5-minute opening range high, a local pivot high, or a clean reclaim after the flush.

The stop is placed immediately

The trade is defined by the low of day, the low of the entry candle, or the prior low. Position size follows from that stop distance.

Trigger rule

The entry should occur close enough to the support test that the stop remains tight. The setup is strongest when the stock begins moving away from the stop shortly after entry.

4. Risk and position sizing

Risk first

Position size calculation

The account risk is chosen first. The stop distance is measured next. Position size is then calculated so that a stop-out loses only the planned amount.

Step	Decision
1	Choose account risk, commonly around 0.25–0.5%.
2	Define the invalidation level: low of day, entry candle low, or prior low.
3	Measure the percentage distance between entry and stop.
4	Size the position so that the loss at the stop equals the planned account risk.

Stop placement

The stop belongs at the point where the pullback has failed. The preferred stop is close, visible, and tied to the price action that created the entry.

Low of entry candle: useful for very tight reversal entries.
Low of day: useful after a flush-and-reclaim setup.
Prior low: useful when the stock is forming a higher-low structure.
Support shelf: useful when price has repeatedly defended the same area.

Risk compression

The power of the setup comes from entering near invalidation. A small stop distance allows meaningful exposure while keeping the account risk fixed.

5. Trade management

After entry

The management plan depends on the quality of the move after entry, the market backdrop, and the trader's profit cushion. The technique favours selling strength when the move becomes extended, while keeping some flexibility for exceptional trends.

Trade behaviour	Management response
Immediate move away from stop	Hold according to the original plan. Strong trades should separate from the entry quickly.
Move reaches 3R–5R	Consider partial profits, especially if the stock is extended on the lower timeframe.
Market is strong and position has cushion	Trail a portion or the full position while the trend remains intact.
Move stalls quickly	Reassess whether the market is choppy and whether the setup is still behaving correctly.
Price returns to the stop	Exit according to the defined invalidation level.

6. Pullback quality score

Website-ready model

This scoring model converts the podcast lessons into a practical checklist for a watchlist, scanner, or manual review page. It is designed to rank pullback candidates before the intraday trigger appears.

Condition	Score	Evidence
Stock is in a strong uptrend	+2	Price above rising 20/50-day averages; recent higher highs or strong relative strength.
Recent catalyst, EP, or high-volume move	+2	Gap, earnings reaction, news-driven move, high RVOL, or major theme participation.
Pullback into 9 EMA or 21 EMA	+2	Price returns to a rising short/intermediate moving average.
Pullback into anchored VWAP	+2	AVWAP from swing high, swing low, gap day, or major reversal candle is near price.
Prior pivot or gap level nearby	+2	Old resistance, prior high, support shelf, or gap reference overlaps with the pullback.
Volume quietens on the pullback	+1	Pullback is orderly rather than a heavy-volume collapse.
Sector or theme remains strong	+1	Related names are holding up or moving together.
Market condition supports risk	+2	Indices, breadth, and recent trade feedback are constructive.

0–4: Low quality 5–8: Watch only 9–12: Strong candidate 13–14: Priority setup

7. Execution checklist

Before the trade

Candidate checklist

The stock has a clear reason to be on the watchlist.
The trend is still intact on the daily chart.
The pullback is into the 9 EMA, 21 EMA, 50 EMA, anchored VWAP, prior pivot, gap level, or a cluster of these.
The stock is not excessively extended above the planned stop.
The sector, theme, or related watchlist names are still acting well.
The broad market supports taking risk.

Entry checklist

Price has tested the planned support zone.
An intraday low or entry candle low has formed.
Price has reclaimed a 1-minute or 5-minute trigger level.
The stop is obvious before entry.
The position size is calculated from the stop distance.
The planned loss is acceptable before the order is placed.

Management checklist

Hold while price moves cleanly away from the stop.
Consider partial profits when the move reaches 3R–5R.
Trail remaining size only while the trend and market remain supportive.
Exit when price hits the invalidation level.
Record whether the support zone, trigger, and stop behaved as expected.

Drawdown control checklist

Reduce risk when recent trades stop working.
Reduce trade frequency in choppy markets.
Avoid flipping bias repeatedly during the same session.
Track whether losses are coming from valid setups or random entries.
Review losing trades for setup quality, market condition, stop placement, and entry timing.

8. Failure modes

Risk controls

Failure mode	What it looks like	Control
Choppy market	Trades move slightly in favour, then reverse back into the stop.	Reduce size, reduce frequency, and wait for cleaner market feedback.
Late entry	Entry is too far above the support test, making the stop wide.	Wait for a new setup or a tighter intraday structure.
Weak theme	The individual stock pulls back while related names are also breaking down.	Require stronger confluence and smaller risk.
Broken trend	Price slices through the 9/21/50 EMA area with heavy selling.	Respect the stop and reassess from cash.
Overtrading	Repeated entries after stop-outs, often with reduced setup quality.	Cap the number of attempts and review the market condition before re-entering.

Key control

The biggest damage comes from many small, avoidable losses during unsuitable market conditions. The method needs both precise entries and fast recognition when the market is no longer rewarding them.

9. Daily workflow

Repeatable process

Before the session

Review broad market health.
Check recent leaders and EP names.
Mark stocks pulling into 9/21/50 EMA, anchored VWAP, prior pivots, or gap levels.
Decide which names deserve alerts.

During the session

Watch for flushes into planned support.
Use 1-minute or 5-minute reversal triggers.
Define the stop before entry.
Size from the stop, not from conviction.

After the session

Record the setup quality.
Record whether support held.
Record whether the trigger worked.
Review losses for timing, market condition, and rule discipline.

10. Summary model

One-page version

Find strength

Start with stocks that have already shown momentum, catalyst behaviour, theme leadership, or strong relative action.

Wait for the support zone

Prioritise the 9 EMA, 21 EMA, 50 EMA, anchored VWAP, prior pivot levels, and gap references.

Require confluence

The strongest pullbacks occur where multiple traders using different tools are likely to see the same support area.

Enter on reversal

Use the first clean 1-minute or 5-minute reversal from support, such as an opening range reclaim or local pivot break.

Define risk immediately

Place the stop at the low of day, low of entry candle, or prior low, then size the trade from that stop.

Manage strength

Take partials into strong moves, trail when the market supports it, and cut the trade when the invalidation level is reached.