#MarketPullback

Pullback occurs when:

1. Price has risen too quickly: Short-term investors take profits, leading to increased selling pressure.

2. Technical resistance is hit: Price encounters a strong resistance area (e.g., MA, trendline, Fibonacci…) causing downward pressure.

3. Negative short-term news: News, economic data, or short-term FUD causes a price drop reaction.

4. Trading volume is weakening: The uptrend lacks strength, allowing for a temporary price adjustment.

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How does a Market Pullback happen?

• The decrease usually ranges from 3% - 10% for stocks, or 5% - 15% for crypto (depending on market volatility).

• It occurs over a few hours to a few days (short-term), after which the market may continue its upward trend.

• Volume is often lower than during the previous increase, indicating no strong selling pressure from major investors.

What is the action strategy during a pullback?

• Long-term investors: May buy more (DCA) when the price adjusts to the support zone.

• Short-term traders: Look to buy at the technical support area (Fibonacci, trendline…) combined with confirmation signals (volume, RSI, MACD…).

• Risk management: Set stop-loss below support to avoid confusion with a reversal.