#MarketPullback

What is a Market Pullback?

A market pullback is a temporary decline in the price of an asset within a broader trend.

In a bull market, the price dips slightly before continuing its rise, while in a bear market, there may be a temporary increase in price before it continues to fall.

These movements are often caused by natural corrections in supply and demand, unexpected news, or profit-taking by investors.

Why is it relevant to understand it?

For beginner traders: It helps to differentiate between a pullback and a trend reversal, avoiding hasty decisions.

For specialists: It offers strategic entry or exit opportunities, as pullbacks often mark key levels of support or resistance.

Practical example: In an upward trend, a pullback can be an ideal moment to buy before the price continues to rise.