What is a Market Pullback?📢📢📢📢👇
A market pullback is when the market takes a step back after rising.🌀 Think of it like p💸💵rices climbing a hill, sliding down💰 a bit, and then heading back up. Pullbacks are normal and happen🕯️ regularly in the stock market.¹ ²
Key Points on Market Pullbacks🪙📝👇
- 👉1️⃣*Frequency of Pullbacks*: You can expect a 5% dip almost every year, a 10% correction about once every year and a half, a 15% drop roughly 🏢once every 2.5 years, and a 20% bear market around 🎆once every 4 years.
- 👉2️⃣*Causes of Pullbacks*: Pullbacks can happen due to profit-taking, weak earnings💸 reports, political events,🎁 shifts in central bank tone, or technical levels.🤔
-👉3️⃣ *Trading Pullbacks*: Traders use techniques like buying the dip,🗒️ using moving averages, Fibonacci📝 retracements, and trendlines to trade👍$ pullbacks.