Pullback/retracement Sample Clauses

Pullback/retracement. When a chart that’s in an up trend has a higher high, and then the price drops lower, but not as low as the previous low, it is called a pullback or retracement. Conversely, when a chart that’s in a down trend has a lower low, and then the price goes higher, but not as high as the previous high, it is again called a pullback or retracement. It is critical to watch what happens after a pullback or retracement: Does the trend continue? Does it reverse? Or does the market enter a period of consolidation?
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Related to Pullback/retracement

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