Valid Pullback Indicator for MT5 Download – Free – [TradingFinder]

The Valid Pullback Indicator is designed to identify three main types of pullbacks in the market. This tool places colored boxes with numbering on the chart to highlight valid pullbacks.
Its mechanism is based on detecting the main price movement and then examining its short-term retracement in the direction of the prevailing trend. Each box defines the pullback range, and the number inside it indicates the type of pullback detected.

Valid Pullback Indicator Specification Table

The specifications of the Valid Pullback Indicator are as follows.

Valid Pullback Indicator at a Glance

In the Valid Pullback Indicator, bullish signals are displayed in blue, indicating the continuation of the market’s upward trend. Conversely, bearish signals are shown in red, representing the persistence of selling pressure and the downward movement of price.
This color distinction simplifies the identification of price retracement areas and helps determine optimal entry points for trades.

Uptrend Conditions

According to the New Zealand Dollar vs US Dollar (NZD/USD) chart in the 30-minute timeframe, valid bullish pullbacks are displayed using blue boxes and numbers.
These zones not only indicate temporary price retracements but also represent ideal entry points for buy trades.

Downtrend Conditions

Based on the Australian Dollar vs US Dollar (AUD/USD) chart in the 15-minute timeframe, the indicator identifies bearish pullbacks and displays them with red boxes.
In such market conditions, traders can use these zones as signals for entering sell positions in alignment with the dominant trend.

Valid Pullback Indicator Settings

The adjustable parameters in the Valid Pullback Indicator are as follows:

• Determine Trend by MA: Trend identification based on Moving Average
• Fast MA Period: Time period of fast moving average
• Fast MA Applied Price: Reference price of fast moving average
• Fast MA Method: Calculation type of fast moving average
• Slow MA Period: Time period of slow moving average
• Slow MA Applied Price: Reference price of slow moving average
• Slow MA Method: Calculation type of slow moving average
• First Condition: Activation of first condition
• Number of Bars for Trend Determination: Candle count for trend detection in first condition
• Second Condition: Activation of second condition
• Number of Bars for Trend Determination: Candle count for trend detection in second condition
• Third Condition: Activation of third condition
• Number of Bars for Trend Determination: Candle count for trend detection in third condition
• Downtrend Color: Assigned color for bearish signals
• Uptrend Color: Assigned color for bullish signals

Conclusion

The Valid Pullback Indicator is designed to detect three main types of pullbacks in market trends. Using colored boxes and numbering, it visually highlights valid pullbacks on the chart, making their identification easier for traders.
Moreover, in the settings panel, it allows customization of trend filters using fast and slow moving averages.
Users can adjust the periods, calculation methods, and reference prices of the moving averages according to their trading strategy.