#MarketPullback The term **#MarketPullback** refers to a temporary decline in the price of an asset or the overall market, typically after a period of gains. Unlike a bear market or a crash, a pullback is usually short-term (days or weeks) and represents a mild correction rather than a long-term trend reversal.

### **Key Characteristics of a Market Pullback:**

1. **Moderate Decline** – Typically a **5% to 10% drop** from recent highs.

2. **Short Duration** – Often lasts a few days to a few weeks.

3. **Natural Market Behavior** – Common in both bull and bear markets.

4. **Buying Opportunity** – Many investors see pullbacks as a chance to enter at lower prices.

### **Possible Causes:**

- Profit-taking after a rally

- Economic data surprises

- Geopolitical tensions

- Sector-specific news

- Temporary liquidity shifts

### **Difference Between a Pullback, Correction, and Bear Market:**

- **Pullback:** -5% to -10% (short-term)

- **Correction:** -10% to -20% (weeks/months)

- **Bear Market:** -20%+ (prolonged downtrend)

### **How Traders & Investors React:**

- **Trend Followers:** May hold or add positions if the uptrend remains intact.

- **Contrarians:** Look for oversold conditions to buy.

- **Risk Managers:** Use stop-losses to protect gains.

Would you like insights on how to identify or trade pullbacks in specific markets (stocks, crypto, forex)?