Pullback to the 20 EMA

In a clear trend, price often pauses and dips back to its 20-period exponential moving average before continuing. This strategy waits for that dip and joins the trend when it resumes.

Trend strategiesBeginnerConfirmed on candle close

Watch it play out

Replay plays a setup this strategy already finished and stops so you can call it. Live watches for the next one on Bitcoin (BTC-USD, 1-minute candles). Either way a setup is marked only when a candle closes, then it's locked and plays out to its target or its stop. Nothing to trade here.

How the live chart applies the rules
  • 1-minute candles. The chart runs every strategy on 1-minute Bitcoin candles from Coinbase, whatever timeframe the strategy page suggests. Times are New York time.
  • Closed candles only. Levels, triggers and stops are read when a candle closes. Entry is that candle's close.
  • One setup at a time. While a setup is playing out, the same strategy doesn't start another.
  • Sensible risk only. A setup counts only if its stop is between a quarter and 6 times the average candle range (ATR 14) from entry (wider for session-range strategies), and its target is at least 0.75R away.
  • How a setup ends. At its target or its stop. If one candle touches both, the stop counts. A setup also ends at any exit its page names, and after 120 candles (longer for trend and session strategies) if nothing is hit.
  • Replays. A replay plays the latest setup this strategy finished on the live chart's recent history, sped up. It's the same setup the live chart confirmed, with the same entry, stop and result. If the strategy hasn't finished one recently, the replay uses example candles and says so.
  • The trading day. A day runs 6:00 PM to 6:00 PM ET, like futures. VWAP restarts at 6:00 PM, and "yesterday" means the last full trading day.

How Pullback to the 20 EMA works

TargetStopPullback to the averageTrend resumes
Example drawing, not live market data.
1Where's the level?
The 20 EMA, in a trend where the 20 EMA is above the 50 EMA and both have risen over the last 10 candles (reverse everything for downtrends).
2What's the trigger?
A candle's low touches the 20 EMA, then the next candle closes above that candle's high and above the 20 EMA.
3Where is it wrong?
Just below the lowest low of the last 5 closed candles.
4Where does it end?
2 times the risk, or the most recent swing high, whichever comes first.
Markets
Futures, Stocks, Forex, Crypto
Timeframes
5m to 1h
Sessions
Any liquid session
Also called
EMA pullback, trend pullback

What it means

In a clear trend, price often pauses and dips back to its 20-period exponential moving average before continuing. This strategy waits for that dip and joins the trend when it resumes.

How it is confirmed without repainting

EMA values are read on closed candles only. The pullback low is fixed when the trigger candle closes.

When it fails

Price closes through the 50 EMA, the moving averages flatten and cross, or pullbacks get deeper each time.

Education only. Prop Firm Duel does not provide trade signals or financial advice. This page explains how the strategy is commonly defined. Past results never guarantee future results.

More Trend strategies

All strategies
TrendBeginner

9/21 EMA crossover

When a fast moving average crosses above a slow one, momentum has turned up. This is one of the oldest trend signals: follow the cross, exit on the opposite cross.

See the rules
TrendIntermediate

200 EMA bounce

The 200-period EMA is the line many traders watch to separate an uptrend from a downtrend. In a rising market, the first test of a rising 200 EMA often holds.

See the rules
TrendBeginner

Bull and bear flags

A sharp move (the pole) is followed by a small, orderly drift against it (the flag). When price breaks out of the flag in the pole's direction, the trend usually continues.

See the rules