// TRADING TERMINOLOGY
What is Pullback?
A temporary fall in the price of an asset from its recent peak.
In-Depth Explanation
Pullbacks are often seen as opportunities to "buy the dip" in an ongoing uptrend. They represent a healthy pause in a trend where some traders take profits before new buyers enter.
Practical Example
"The FTSE 100 has pulled back to its 50-day moving average, providing a potential entry point."
Related Terms
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
Join Drawdown Free