First pullback after London impulse: entry criteria
Posted: Wed Oct 07, 2026 5:32 am
My entry rules for the first pullback after a London impulse, as they are written on my card:
1. The level must exist before the open. Asia high or low, previous day's high or low, or a round number that mattered overnight. Not something I draw after the move starts.
2. The impulse must be clear: at least 1.5 times the average five-minute range, in one direction, through the level, with normal spread.
3. The pullback must come back toward the level without breaking it, and it must not coincide with a data release.
4. Entry on the first M1 candle that closes in the impulse direction. Stop beyond the pullback low or high. Time stop of 20 minutes.
If any of the four is missing, no trade. The most common failure is point 1: I see a strong move and then go looking for a reason. That is not a first pullback setup, that is chasing.
After a messy open, with two or three fake breaks before 08:30, I skip the whole setup for the day. Pullbacks in chop are just more chop.
Win rate on this is around 50 percent for me, but the winners run further than the losers, which is the entire point.
1. The level must exist before the open. Asia high or low, previous day's high or low, or a round number that mattered overnight. Not something I draw after the move starts.
2. The impulse must be clear: at least 1.5 times the average five-minute range, in one direction, through the level, with normal spread.
3. The pullback must come back toward the level without breaking it, and it must not coincide with a data release.
4. Entry on the first M1 candle that closes in the impulse direction. Stop beyond the pullback low or high. Time stop of 20 minutes.
If any of the four is missing, no trade. The most common failure is point 1: I see a strong move and then go looking for a reason. That is not a first pullback setup, that is chasing.
After a messy open, with two or three fake breaks before 08:30, I skip the whole setup for the day. Pullbacks in chop are just more chop.
Win rate on this is around 50 percent for me, but the winners run further than the losers, which is the entire point.