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Trading & Technical Analysis

Pullback

Also called: retracement, dip, buy the dip

A pullback is a temporary move against the prevailing trend before it resumes — the setup behind buying the dip. The unresolvable difficulty is that a pullback and the start of a reversal look identical while they're happening, and can only be told apart afterwards. Trading them is therefore an exercise in position sizing and stops rather than in prediction.

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