**Strategies for Trading Pullbacks**
1. **Buy on the pullback**
- Enter the uptrend at a more attractive price (e.g., near a moving average or technical support).
2. **Use stop-loss**
- Protect yourself with a stop-loss order below the pullback (in case the pullback turns into a larger drop).
3. **Confirm with volume**
- If the volume is low during the drop, it increases the chance that it is just a pullback.
4. **Wait for confirmation**
- Some traders wait for the price to rise again before entering (e.g., breaking a downward trend line).
**Practical Example (Stock Market)**
- **Stock XYZ:** Rose from R$50 to R$60 in one month, but pulls back to R$56.
- **Analysis:**
- The pullback was about 6.7% (within the pullback range).
- The volume was low during the drop.
- The 50-day average is at R$55 (potential support).
- **Strategy:** Buy near R$55 with a stop at R$53.
**Summary**
✔ **Pullback = Temporary retreat in an uptrend.**
✔ **Can be an opportunity to enter or increase positions.**
✔ **Always confirm with technical and fundamental analysis.**
✔ **Use risk management (stop-loss) to avoid surprises.**
If the pullback exceeds 10% or breaks important supports, it may no longer be a pullback, but rather the start of a correction or reversal.