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🚨PAY ATTENTION TO THIS VITAL INFO.
A pullback refers to a temporary price reversal or correction against the prevailing trend in financial markets.
It occurs when the price retraces or pulls back from its recent high (in an uptrend) or low (in a downtrend)

The difference between Pullbacks (Retracements) and Reversals is that:
A pullback is temporary, while a reversal is a more permanent change in the direction of an overall trend.
Pullbacks usually last for a few trading sessions.

In this image we can see an uptrend with horizontal levels acting as Resistance turned into Support.
Each arrow marks a pullback to these levels before the trend continues higher.
This is a classic Breakout & Retest pattern

This image represents a downtrend with a diagonal trendline.
Each arrow marks a pullback (temporary price rise) before continuing lower.
The last arrow shows a breakout, signaling a potential trend reversal.

Fibonacci Pullbacks can be combined with Moving Averages very effectively.
When a Fibonacci Retracement falls into the same place as a Moving Average, those can be high probability pullback areas.

Types of Pullbacks
1. Aggressive: An aggressive pullback is a sharp price drop after a strong rally, as traders take profits or react to resistance.
Price drops impulsively and agressively.
Theres no interest in stopping at the Demand Zone. The trend is lost, and is not convenient to place abuy in the Order Block.

2. Sweeping: Deep pullback that clears liquidity before resuming the trend.

3. Corrective Pullback: This is a gradual pullback with low momentum, often forming flags or channels. Price returns to the Demand Zone.
Sweeps the liquidity and shows that there's not selling pressure.
The pullback is moderated, not agressive.

In my next article, I will focus on trading Indicators that helps you to identify Pullbacks.
Note: Don't forget to do your own research and follow me for more useful crypto content ✅️
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