Pullback

A pullback is a temporary dip in a stock's price while it's in an overall uptrend. Think of it as a brief pause or step backward during a climb uphill. You'll hear traders mention pullbacks constantly because they're normal market behavior—stocks rarely go straight up. Pullbacks matter because they often create buying opportunities for investors who believe in the stock's direction. For example, if TechCorp has been climbing for weeks but suddenly drops 5% over a few days before resuming its rise, that dip is a pullback. It's different from a reversal, which signals a real change in direction. Spotting pullbacks helps you decide whether to buy more at a discount or stay cautious.