#MarketPullback A market pullback is a temporary decline in prices during an upward or downward trend, often of 5 to 10%, without reversing the main trend. It results from profit-taking, economic events, or natural market corrections. Unlike a reversal, which indicates a lasting change in trend, a pullback is brief, lasting a few sessions. Traders see it as a buying opportunity at a reduced price in an upward trend. For example, in 2021, DraftKings experienced a pullback after a strengthening, offering a lucrative entry before a recovery. Technical indicators, such as moving averages, help identify these movements.
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