Market pullback is the phenomenon of the financial market experiencing a slight decline after a strong price increase, often seen as a temporary adjustment rather than a trend reversal. A pullback occurs when investors take profits or when there is short-term concern amidst a sustained long-term upward trend.

This is an opportunity for investors to buy more stocks, cryptocurrencies, or assets at lower prices before the market continues to rise. However, it is important to distinguish pullback from reversal, as a prolonged strong selling pressure can lead the market into a more significant decline.

To take advantage of a pullback, investors need to combine technical analysis, especially by observing support and resistance levels, to make appropriate decisions.