668# Pullback factor indicator
Submit by Orazio 28/12/2015
Pullback factor indicator is a trading tool for entry in trend with retracement.
Example how to use this indicator.
To identify the trend, use 20 periods moving average and 50 periods moving average.
When the 20 EMA is above 50 EMA the trend is up. Only buy trades.
When the 20 EMA is above 50 EMA the trend is up. Only sell trades.
EMA20 > EMA 50 - enter a long trade when the Pullback Factor indicator peaks at a level above 1.5. and after come back below the ma.
EMA20 < EMA 50 Enter a short trade when the Pullback Factor peaks at a level above 1.5.
and after come back below the ma.
Set your stop loss at the nearest support or resistance level. And your profit
target would ratio 1:1.2 your stop loss.
In the picture two Profit factor indicator with cloud indicator and cycle indicator.