Pullback
Temporary price return to a zone before trend continuation.
Beginner-friendly explanation
A pullback is a small price drop during a trend. It’s a “pause” where the price briefly pulls back before continuing.
Example: Bitcoin goes up, then slightly drops to an earlier level before rising again. That’s a pullback.
Intermediate-level insight
A pullback often occurs after breaking a support or resistance. It tests the strength of the broken level. Traders use it as a strategic entry.
Example: ETH breaks resistance at $1,800, rises to $1,850, then returns to $1,800. This pullback confirms support before further upside.
Advanced perspective
Pullbacks are key structures in breakout or trend strategies. They’re analyzed via retracement depth (e.g., 38% or 50% Fibonacci), volume, or reaction near liquidity zones. A shallow pullback with declining volume often signals a strong continuation.
Example: On a daily chart, BTC retraces 38% of the last upward move with low volume: a textbook technical pullback.
Technical & Chart Analysis
pullback, retracement, breakout, test, support, resistance, entry, trend, fibonacci