Pullback Definition

A pullback is a temporary reversal in price within a broader trend, often used as an opportunity to enter in the trend's direction.

What is a Pullback?

Pullbacks are considered a normal part of trending markets rather than a signal of full trend reversal.

Traders often use pullbacks to enter positions at more favorable prices within an established trend.

A stock in a strong uptrend that briefly dips 3% before continuing higher is experiencing a pullback.

A pending order is an instruction to buy or sell an asset once the price reaches a specified level, rather than immediately.

A pip is the smallest standardized price movement in a currency pair, typically the fourth decimal place.

A portfolio is a collection of financial assets, such as stocks, bonds, currencies, or commodities, held by an individual or institution.