Investopedia explains 'Retracement'
Technical analysts make an important distinction between retracements and reversals. Retracements are short-term changes within a longer-term trend, while reversals indicate the end of a larger trend and the beginning of a new trend. When a retracement first begins, it is difficult to tell whether it is a retracement or a reversal. Technical analysts try to distinguish between the two using Fibonacci retracements, pivot point support and resistance levels, and trendline support and resistance levels.
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