In financial markets, retracements are often key moments to analyze the health and direction of a trend. A retracement is characterized by a temporary drop in the price of an asset, which may be due to profit-taking, macroeconomic news, or changes in investor sentiment. These movements do not necessarily indicate a change in trend, but they can provide opportunities for new participants to enter the market at more attractive prices. It is essential to observe the volume and speed of the retracement, as a moderate drop with low volume can be interpreted as a healthy pause, while a sharp sell-off could signal greater risks. Analyzing these moments helps make more informed decisions and manage risk efficiently.
