Futures Trading: A pullback setup in the Dow | Simpler Trading


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Futures Trading: A pullback setup in the Dow | Simpler Trading

Understanding Previous Pullbacks

Hey traders Raghee here and in this video we’re going to do a peek at a swing setup in the Dow. The thing to remember is that we can see the history of previous pullbacks to the wave, and these previous pullbacks will give me a heads up as to what I should anticipate the next time that it happens.

Market Analysis

When the market comes down to the 34 EMA on the high, I usually wait for the market to at least get to the close of the 34 EMA on the close. I might even be aware that the low could be tested, and that we could see price action even down to the point of control. This means I’m ready for a pullback and willing to be a buyer, but I have to be aware that volatility could be higher.

Dealing with Volatility

As futures traders or ETF traders, dealing with unpredictable volatility requires strategic scaling in at different levels. The range of volatility could take us clear down to the point of control, so scaling in at various levels is key to managing risk and potential returns.

Using Options as an Alternative

Another technique to consider is using options at specific price triggers to go long on instruments like DIA, YM, MYM, IYT, or XLI. This approach can provide flexibility and leverage in volatile market conditions while still aligning with the overall uptrend.

Sticking with Relative Outperformance

During times of high volatility, sticking with relative outperformers like the Dow can be a safer bet compared to individual sectors or stocks. The Dow’s volume support and relative strength make it a favorable option for traders looking to navigate market turbulence.


As we navigate through market volatility, it’s important to stay disciplined and strategic in our trading approach. By analyzing previous pullbacks, scaling in effectively, and sticking with relative outperformers, traders can position themselves for success in challenging market conditions.


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