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The pullback trade is the pattern we trade the most. It occurs often in all markets and can give an edge for continuation in a trending market. Here's the chart of lean hog futures, (April contract). The price action is clearly in an uptrend and marked by a period of consolidation, followed by continued upwards direction:  Having identified an inflection point where price pauses we can structure a trade in the hope that price continues to rise:  Zooming in to the relevant part of the chart on the left indicates the pullback before the trade was entered.
The green line shows the buy price around 86 with the red line showing the stop loss point at 83.5 and finally the blue line shows the initial profit target at 88.5, hit the following day, where we took half the position off. Two days later the trade was exited on the strong down bar, for a total profit or 1.1R The pullback is one of the best ways to enter a trending market, which in this example, worked perfectly!
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