Impulse, Pullback, Continuation Pattern Strategy

Decoded price action strategy trading the impulse, pullback, continuation sequence for swing and day trading, converted into Pine Script for TradingView.

Published · Updated · Methodology: Price Action

Part of: Fibonacci Trading

  • Methodology: Price Action
  • Content type: strategy
  • Timeframes: Swing trading (larger timeframes), Day trading (intermediate timeframes), Scalping (low timeframes)
  • Markets: Not specified (general trading strategy)

Indicators used

  • Fibonacci
  • Price Action

Source video

Decoded from: Cómo Crear Una Estrategia De Trading Rentable [En 4 Pasos] by Alex Ruiz — watch the original

Key timestamps:

  • 0:33 - What is a trading strategy
  • 2:39 - Finding a pattern
  • 7:43 - Adding rules to the pattern
  • 14:06 - Scaling profitability
  • 20:22 - How to get the same results
  • 24:20 - How to start now?
  • 09:10 - Pattern: Impulse, Pullback, Continuation
  • 10:40 - Trading philosophies (Price Action, Indicators, Smart Money)
  • 11:55 - Example: Impulse, Pullback, Continuation with Fibonacci
  • 12:40 - Example: Impulse, Pullback, Continuation with Support/Resistance
  • 15:00 - Entry condition: Price starts to rise strongly, breaking previous highs
  • 15:40 - Entry condition: Price falls to Fibonacci levels
  • 16:20 - Fibonacci levels: 0.382, 0.5, 0.618
  • 17:00 - Entry action: Buy order when price reaches Fibonacci levels and starts to rise (green candles)
  • 17:40 - Stop Loss: At 0.75 Fibonacci level
  • 18:00 - Take Profit: At previous highs
  • 18:40 - Trade Management: Move SL to breakeven at 1% R:R
  • 19:00 - Trade Management: Trailing stop loss

Strategy overview

This entry sits under the Fibonacci umbrella, but Fibonacci is not what the video is about. "Cómo Crear Una Estrategia De Trading Rentable [En 4 Pasos]" by Alex Ruiz is a meta-lesson: instead of handing over a finished setup, it teaches a four-step procedure for building one — define what a strategy actually is, find a recurring pattern in the chart, wrap that pattern in rules, then work on making the result scalable. The impulse–pullback–continuation sequence is simply the pattern the video uses to demonstrate the method: price pushes in one direction, retraces part of that move, and resumes.

That framing explains where Fibonacci enters. In a build-your-own-strategy walkthrough, the retracement tool is not the idea — it is the measuring device that turns a vague observation ("price pulls back before continuing") into something a rule can reference. The video's own chapter order makes the sequence explicit: the pattern is identified first (2:39) and only afterwards do rules get bolted onto it (7:43). Anyone who has watched Fibonacci content that opens with the levels already drawn will recognise how unusual that ordering is.

The later chapters shift away from the chart entirely — scaling profitability, reproducing the same results, and how to get started — which places roughly half the runtime on process and execution rather than setup mechanics. This page has no rule-by-rule extraction to show, so treat it as a pointer: useful if you want the reasoning behind how a continuation pattern becomes a mechanical strategy, less so if you are looking for a ready-made entry trigger to copy.

Topics

impulse pullback continuation strategy · price action strategy · fibonacci trading strategy · trading strategy · scalping strategy · day trading strategy · swing trading strategy · tradingview strategy · pine script · trading patterns · technical analysis

Frequently asked questions

What is an impulse, pullback, continuation pattern?

It describes a three-part price sequence: a strong directional move (the impulse), a partial retracement against it (the pullback), and a resumption in the original direction (the continuation). It is one of the most common ways traders express trend-following logic, and Fibonacci retracement levels are frequently used to measure how deep the pullback runs.

What are the four steps in Alex Ruiz's approach to building a strategy?

The video is structured around defining what a trading strategy is, finding a repeating pattern, adding rules to that pattern, and then scaling profitability — with closing chapters on reproducing the results and getting started. The emphasis is on the build process itself rather than on one specific setup.

Is this a Fibonacci strategy or a price action strategy?

Both labels apply, but the hierarchy matters: price action supplies the pattern being traded, and Fibonacci serves as the measurement layer that makes the pullback definable in rule form. The video treats the pattern as the subject and the tool as a means of specifying it.

Can a continuation pattern be traded across different timeframes?

The impulse–pullback–continuation structure is timeframe-agnostic and appears in swing, intraday, and scalping contexts alike. What changes with timeframe is the noise level and the practical cost of trading it, which is why the same pattern needs different rules depending on where it is applied.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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