Pullback
Also called: retracement, dip
A temporary move against the prevailing trend — a dip within an uptrend — that often offers a lower-risk entry.
A pullback is a short counter-trend pause: in an uptrend, a dip on lighter volume as early buyers take profit before the trend resumes. It's distinct from a reversal, which changes the trend's direction outright.
Traders look to buy pullbacks into support — a prior breakout level, a moving average, or a Fibonacci retracement — where the larger uptrend is likely to reassert. A pullback that cuts too deep or comes on heavy volume can be an early reversal warning.
On StockSetups
StockSetups' 'retest' lane is built around pullbacks: a name that broke out and is pulling back to retest the breakout level, with the entry and stop drawn on the chart.
Related terms
See pullback on tonight's board.
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