What context can I use each word in?
Learn when and how to use these words with these examples!
retracement
Example
The stock experienced a retracement after reaching its all-time high. [retracement: noun]
Example
The market retraced some of its losses from the previous day. [retraced: past tense verb]
pullback
Example
The market experienced a pullback after a long period of growth. [pullback: noun]
Example
The stock pulled back from its recent high. [pulled back: past tense verb]
Good things to know
Which word is more common?
Pullback is more commonly used than retracement in everyday language and finance contexts. Pullback is a versatile term that can be used to describe a decline in prices in various financial markets, while retracement is a more specific term used in technical analysis.
What’s the difference in the tone of formality between retracement and pullback?
Both retracement and pullback are formal terms used in finance and investing contexts. However, retracement may be considered more technical and specialized due to its association with technical analysis.