Pullback & Rally Checklist [Strategy] by noboru5963
By noboru5963
Performance Metrics
- Author: noboru5963
- Symbol: BINANCE:BTCUSDT
- Timeframe: 1 hour
- Win Rate: 30.1%
- Profit Factor: 0.668
Description
Checklist for Buying on Dips and Selling on Rallies [Confluence]OverviewThis tool transforms two checklists that traders typically verify manually—“buying on dips” in an uptrend and “selling on rallies” in a downtrend—into objective, rule-based indicators and strategies. Rather than relying on intuition to determine whether a setup is valid, it evaluates multiple conditions—such as structure, trend, momentum, and volume—and generates a signal only when sufficient conditions are met (confluence).It is designed as a learning and analysis aid to evaluate trend continuation setups using consistent criteria. It is not an automated trading system that guarantees profits.How It WorksThis script independently evaluates two checklists for each confirmed bar.For pullback buying (6 conditions), it checks for higher highs and higher lows, maintenance of the previous low, reactions at the EMA20/EMA50 or the Ichimoku Cloud, diminishing selling pressure (decreasing volume, lower wicks, rebound candles), a valid risk-reward ratio, and confirmation of a rebound rather than a rush to buy during a downtrend.For sell-on-rally (7 conditions), we verify that the price has not made a new high, that lows are being cut (continuation of the downtrend), that the EMA or Ichimoku Cloud is acting as resistance, that volume during the rally is weak, that the price is being sold off at the rally point, that there is a valid risk-reward ratio, and that the downtrend structure has not broken down even if the price rises.Signals are generated only when the number of met conditions reaches the set threshold. Since the status of each condition is displayed in real time in a table on the chart, you can immediately see why a signal was (or was not) generated.Stop-Loss and Take-ProfitFor each signal, the system plots entry, stop-loss, and take-profit levels with price labels and displays the resulting risk-reward ratio. You can choose between “Structure-Based” placement—setting stop-loss and take-profit levels outside the most recent swing—and “ATR-Based” placement—determining distances based on volatility.Key FeaturesIt features a convergence checklist for both pullback buying and retracement selling, a live table displaying the status of each condition, a choice of stop-loss and take-profit placement methods, an optional higher-order trend filter to align signals with the dominant trend, alerts for both directions, and a strategy mode that allows you to backtest strategies using the Strategy Tester.Customizable SettingsYou can adjust swing length, EMA and volume settings, Ichimoku Kinko Hyo parameters, the minimum number of conditions required for a signal, minimum risk-reward ratio, and stop-loss and take-profit methods. Display elements (EMA, Cloud, table, lines, and zones) can be turned on or off individually to keep your chart uncluttered.How to UseApply it to any security or time frame. When a signal is generated, verify the context using the conditions table. Treat the drawn stop-loss and take-profit levels as starting points only, and fine-tune them by comparing them with actual support and resistance levels. We recommend that you do not take the signals at face value, but rather use them in conjunction with your own analysis.Important DisclaimerThis script is intended solely for educational and informational purposes. It does not constitute investment advice, and no results are guaranteed. The conditions in the checklist are a mechanical interpretation of discretionary trading concepts and may not align with every trader’s judgment. Backtest results are based on historical data and do not predict future performance. Optimizing parameters based on past data may lead to misleading results. Be sure to verify the results yourself and practice proper risk management. Trading involves a high risk of significant losses.