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Definition of 'Pullback'
A falling back of a price from its peak. This type of price movement might be seen as a brief reversal of the prevailing upward trend, signaling a slight pause in upward momentum.
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Investopedia explains 'Pullback'
Often pullbacks are seen as buying opportunities after a security has had a large upward price movement. It is important, however, to analyze closely any pullback as it may be a sign of a definite trend reversal or a slight pause in the upward trend, each having very different trading implications.
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To "find your game" in technical analysis, you need to be able to recognize reversals and continuations as they form.
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Learn how to successfully trade pullbacks and to avoid being crushed by "falling safes."
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Learn how to spot the pivot point from which a new movement will emerge.
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