#MarketPullback is defined as a temporary price drop after a bullish phase, part of a short correction that does not break the main trend . These are its characteristics:
432-1Temporary: usually lasts from hours to several days .
556-0Moderate magnitude: typically between 5% and 20% .
646-0Does not indicate a trend change: unlike a correction (>10%) or a crash (>20%) , it is within a general bullish context.
781-1Buying opportunity: many traders take advantage of it to 'buy the dip' .
🚀 Why do pullbacks occur?
1. 956-0Profit-taking after strong increases .
2. 1081-0Changes in market sentiment due to news or macroeconomic events .
3. 1199-0Overbought conditions (e.g., high RSI), causing technical retracements .
4. 1333-0'Whale' activity moving large positions .
🧠 How to identify a pullback (vs. reversal)
1415-0Analyze support levels: Fibonacci, moving averages, trend lines, pivot points .
1603-0Observe the volume: in pullbacks it usually decreases; in reversals it increases .
1710-0Use technical indicators: RSI, MACD, divergences .
1798-0Watch for strong breakouts: if trend structure is broken, it may be a reversal