Definitions from the Web
Retracement
Definition:
A retracement refers to a temporary reversal in the direction of a price movement in financial markets, typically following a significant move upwards or downwards. It is a technical analysis tool used by traders to identify potential levels of support or resistance within a trend.
Examples:
As a noun:
- The stock market experienced a retracement after reaching an all-time high.
- Traders closely monitor retracements to determine optimal entry or exit points.
As a verb:
- The price retraced to a key level before continuing its upward trend.
- Investors often need to calculate Fibonacci retracement levels to analyze market charts effectively.
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