#MarketPullback

A market pullback is a short-term decline in price during a longer-term uptrend. It's like a "dip" before the market continues climbing. Traders often look at pullbacks as buying opportunities.

Key Features of a Pullback:

Happens after a strong upward move.

Usually retraces 5–20% of the previous move.

Can occur at resistance levels, news events, or overbought conditions.

Often finds support at moving averages (like the 20 EMA or 50 EMA).

How to Trade a Pullback:

1. Identify the trend – Use trendlines or moving averages.

2. Wait for the pullback – Let price retrace.

3. Look for confirmation – Candlestick patterns (like a hammer or engulfing) or indicators (like RSI bouncing from oversold).

4. Enter with a stop loss – Below recent swing low.

5. Set a target – Previous high or use a risk-reward ratio.