Pullback

A pullback is a temporary price movement that runs counter to the main trend of a market. In an upward phase, for example, a pullback is a short-lived downward correction, after which the main movement may resume.

In technical analysis, a pullback is used to distinguish a simple pause within a trend from a genuine trend reversal. The distinction, however, is only possible after the fact and remains uncertain.

It is a descriptive concept applied to any market, including crypto-assets, which are generally characterised by high volatility. No method can predict with certainty whether a movement is a pullback or the start of a reversal.

Disclaimer: This entry is for information purposes only and does not constitute investment advice or a recommendation.