#MarketPullback
A market pullback is a temporary drop in price within an overall uptrend. It usually occurs after a strong move upward, as traders take profits or react to short-term news. Pullbacks are considered healthy for a trend, offering potential buying opportunities for those who missed the initial move. They differ from reversals, which signal a complete change in trend direction. Pullbacks can be shallow or deep but generally retrace 38% to 61.8% of the prior move, based on Fibonacci levels. Smart traders use pullbacks to enter trades with better risk-reward ratios, often combining technical indicators for confirmation.