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.


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.

  1. Toppy

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    The general direction of a market or of the price of an asset. ...
  3. Retracement

    A temporary reversal in the direction of a stock's price that ...
  4. Chartist

    An individual who uses charts or graphs of a security's historical ...
  5. Correction

    A reverse movement, usually negative, of at least 10% in a stock, ...
  6. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
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