A pullback is a short, temporary move against the prevailing trend before it resumes. Traders often wait for a pullback to enter at a better price rather than chasing the move. Telling a healthy pullback from a full reversal is a key skill.
Forex Term
Pullback
A temporary move against the main trend.
Example
In an uptrend, price dipping from 1.1200 to 1.1150 before rising again is a pullback.
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Trading Forex and CFDs involves a significant risk of loss.
Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.