retracement

[rɪˈtreɪsmənt]

retracement Definition

• 1. a temporary reversal in the direction of a stock's price that goes against the prevailing trend
• 2. a technical analysis tool used to identify potential levels of support and resistance

Using retracement: Examples

Take a moment to familiarize yourself with how "retracement" can be used in various situations through the following examples!

• Example

  The stock experienced a retracement before continuing its upward trend.

• Example

  Traders use retracements to identify potential entry or exit points for trades.

• Example

  The Fibonacci retracement tool is a popular method for identifying potential support and resistance levels.

retracement Synonyms and Antonyms

Synonyms for retracement

• correction
• pullback
• bounce
• reaction

Phrases with retracement

• Fibonacci retracement

  a technical analysis tool based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction

  Example

  The trader used Fibonacci retracement levels to identify potential support and resistance levels.

• price retracement

  a temporary reversal in the direction of a stock's price that goes against the prevailing trend

  Example

  The stock experienced a price retracement before continuing its upward trend.

• market retracement

  a temporary reversal in the direction of a market's price that goes against the prevailing trend

  Example

  The market experienced a retracement before continuing its upward trend.

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Summary: retracement in Brief

The term 'retracement' [rɪˈtreɪsmənt] refers to a temporary reversal in the direction of a stock's price that goes against the prevailing trend. It is a technical analysis tool used to identify potential levels of support and resistance, such as the Fibonacci retracement tool. Traders use retracements to identify potential entry or exit points for trades.