#MarketPullback
A pullback is a strategy widely used by traders to identify entry or exit points in buy and sell operations. On Binance, it occurs when the price of an asset makes a corrective movement after a strong trend – whether upward or downward – and returns to a specific support or resistance point, before continuing its original movement.
For example, if Bitcoin breaks an important resistance and reaches a new level, it may temporarily return to the broken level (now a support) before rising again. This is an opportunity to buy the asset at a lower price within an upward trend.
To take advantage of a pullback, it is important to identify these key zones on the chart, analyze the trading volume and use indicators such as the RSI and moving averages. This way, you reduce risks and increase the chances of success in your operations.
On Binance, you can set up price alerts to identify these movements and trade more accurately.