Pullback
A temporary counter-trend retracement within an ongoing trend, offering a lower-risk entry in the direction of the trend.
A pullback is a short-term price move against the primary trend. In an uptrend, price dips before resuming higher; in a downtrend, it bounces before continuing lower. Pullbacks are normal — they relieve overbought/oversold conditions without breaking the trend structure.
The key distinction from a reversal: a pullback makes a higher low (uptrend) or lower high (downtrend) and the prior structure remains intact. Common pullback targets are previous structure, moving averages, or Fibonacci retracement levels.
Related Terms
Fibonacci Retracement
Horizontal levels derived from Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%) that highlight potential pullback support or resistance zones.
IntermediateHigher Low
A trough that forms above the prior swing low — the second structural requirement of a defined uptrend.
BeginnerMoving Average
The average closing price over N periods, updated each bar — smooths noise and exposes the underlying trend direction.
BeginnerRetracement
A partial price reversal within a larger trend, measured as a percentage of the preceding impulse move.
BeginnerSupport
A price level where buying pressure has historically halted or reversed a downward move.
BeginnerTrend Following
A strategy that enters in the direction of the established trend and rides it until structural evidence of a reversal appears.
IntermediateUptrend
A market structure defined by a sequence of higher highs and higher lows, signalling persistent buying pressure.
Beginner