Back to Glossary
General TradingP
Pullback
A temporary reversal in the direction of an asset's prevailing trend. In an uptrend, a pullback is a brief decline before the price resumes its upward movement, often presenting a buying opportunity.
Example
“A stock rallied from $100 to $120, then pulled back to $112 before resuming its uptrend. The trader bought the pullback at the 50% Fibonacci retracement level.”