The markets move in trends, however, it does not occur uniformly, but we can observe setbacks in price, known as pullback and throwback.
Pullback or pull back is a very general term in the world of trading, although most traders do not use it correctly, according to the most purists in the sector. In this article we will know the exact definition of pullback, we will talk about:
What is a pull back in the bag
- Differences between pullback and throwback
- Possible strategies with this technical analysis tool
- Examples of pullback in trading
- What is a Pullback in trading
The term pullback in the stock market is used to refer to setbacks that momentarily interrupt a trend to lean on a support that had already been overcome.
Generally, traders call any retracement that is supported by support or resistance to continue the trend, however, it is important to know that pullback should only be applied to downtrends.
When we talk about setbacks in uptrends, another term is used, throwback, which we will talk about later.