Bull Pullback Trading Pattern
Definition:
A Bull Pullback is when a price action within the context of an uptrend traces an orderly price decline/retracement/correction from the peak of an up leg. Also called a Pullback Buy. Background: The power of an upside move after a retracement can be greater after a strong and steady uptrend due to the possible increase of underlying support. A Bull Pullback can be stronger when the most recent swing high is also an all time high due to the potential lack of future overhead resistance. Practical Use: Technical analysts will often use the Bull Pullback pattern to begin looking for buy entries as the asset reaches support or "wholesale" areas. |
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