Retracement

Retracement is a reversal in the movement of a stock's price, countering the prevailing trend. A retracement does not signify a change in the larger trend. 

Retracement

Retracement is a reversal in the movement of a stock's price, countering the prevailing trend.

 


Explanation of Retracement

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. 

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