DEFINITION of ‘Retracement’ A temporary reversal in the direction of a stock’s price that goes against the prevailing trend. A retracement does not signify a change in the larger trend. On a chart where a stock’s price is generally headed upward, retracements are the small dips in price that the stock experiences during its overall upward trend. Whether an investor identifies a change in a stock’s direction as a retracement or a reversal will impact how he responds to it.
Technical analysts make an important distinction between retracements and reversals. Retracements are short-term changes within a longer-term trend, while reversals indicate the end of a larger trend and the beginning of a new trend. When a retracement first begins, it is difficult to tell whether it is a retracement or a reversal. Technical analysts try to distinguish between the two using Fibonacci retracements, pivot point support and resistance levels, and trendline support and resistance levels.
Share Course Forex Retracement Theory, Free Download Forex Retracement Theory, Forex Retracement Theory Torrent, Forex Retracement Theory Download Free, Forex Retracement Theory Discount, Forex Retracement Theory Review, CopperChips – Forex Retracement Theory, Forex Retracement Theory, CopperChips.