# Pullback

*Trading & Technical Analysis — Finicade finance glossary*

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.

**Also known as:** retracement, dip, buy the dip

**Related terms:** [Breakout](https://finicade.com/glossary/breakout), [Fibonacci Retracement](https://finicade.com/glossary/fibonacci-retracement), [Trend Following](https://finicade.com/glossary/trend-following), [Support and Resistance](https://finicade.com/glossary/support-and-resistance), [Swing Trading](https://finicade.com/glossary/swing-trading)

Source: https://finicade.com/glossary/pullback