How deep, and the candles that confirm

How deep is still healthy?

A pullback that gives back roughly a third to two thirds of the prior impulse is normal — shallow in a strong trend, deeper in a tired one. The zone around the middle (the classic 38–62% area you will measure precisely with Fibonacci later) is where most healthy pullbacks turn. Shallower than that means a very strong trend; deeper than two thirds is a warning that this may be more than a pullback.

The candles that end a pullback

You do not guess where the pullback ends — you wait for price to *show* you, with a candle. At the pullback low (often into a support or a level), look for a rejection wick (a long tail spiking the level and closing back), a bullish engulfing that swallows the last down candle, or a clear shift back to large bodies in the trend direction. Lower volume on the pullback and a volume pickup on the turn add confidence.

• Healthy pullback ≈ a third to two thirds of the impulse retraced.
• Past the prior swing low on a close = structure broken, not a pullback.
• Wait for a confirming candle: rejection wick or engulfing in the trend direction.
• Volume drying up on the pullback, then picking up on the turn, adds confidence.