Retracement

What Does Retracement Mean?
A reversal in the movement of a stock's price, countering the prevailing trend.

Investopedia explains Retracement
An example might be market risk causing a stock's price to pull back. The Fibonacci retracement tool is favored by many traders because of its abilty to identify a price level that a correction may reach before it is able to reverse and continue in the direction of the original trend.

Related Terms

Amplitude
Correction
Fibonacci Retracement
Fifty Percent Principle
Memory-Of-Price Strategy
Price Action
Pullback
Reversal
Speed Resistance Lines
Trend
More Related Terms

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