Pullback (retracement)
Updated 2026-09-20
Definition
A temporary correction of price against the trend's direction, before it resumes.
Why it matters
It's the point where many traders look for entries in the trend's direction, often toward a support, a moving average or a Fibonacci level. If it exceeds the last protected swing it's no longer a pullback but a possible change of trend.
Practical example
Uptrend from 1.0900 to 1.1000: a 50% pullback takes price to 1.0950.
Related entries
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Educational content, not financial advice. Trading involves risk.