Pullback A significant short-term reversal in the

Pullback

A significant short-term reversal in the price of a financial instrument or of a market in general. Prices for a security may often pullback immediately after a pattern is formed. For example a Double Top is pattern which indicates that the price of a stock is descending. When the price breaks through the confirmation point of this pattern it will often pullback or rise for a few days after the pattern has formed. It will then continue its downward trend.