Retracement

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

Investopedia Says... 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.

Terms Related Links

Correction
Fibonacci Retracement
Fifty Percent Principle
Pullback
Reversal
Speed Resistance Lines
Trend

Terms Related Links
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