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Trading Glossary

Pullback

Pullback in forex trading is defined as the price in which the price action there are tendency to the forex market that retrace the portion of the gains before going to continuing the same direction. A pullback is a short-term move in the opposite direction of the longer-term trend, which can offer an opportunity to join an uptrend at a relatively favorable price.A pullback should not be confused with a reversal, which is a more permanent move against the prevailing trend.