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All you wanted to know about a 'pullback' in trading

Failure to exit a trade may create disparity on the breakout strategy.

Trading Strategy
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Trading Strategy

Avdhut Bagkar Mumbai
A pullback is a healthy correction in the long-term upward trend for a stock or the market / index. This is looked upon as an opportunity to enter a trade that provides a window for bigger return over the long term. When a chart portrays a rally on breakout, it does provide intermittent corrections that traders use to buy. Such rallies give intraday moves wherein one can make quick bucks with a well-versed strategy.

Although, while trading on a pullback strategy, one's risk appetite must be acknowledged, or else, the risk may be severe and can damage the overall performance.

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First Published: Jul 30 2020 | 8:48 AM IST

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