CFD Retracement on Upward and Downward CFD Trend

What Is a CFD Price Retracement in CFD?

The cfds price of a cfd instrument does not move up or down in a straight line. Instead the cfds price moves up or down in a zigzag pattern called a cfd trend - in this pattern the cfds price moves upward in a cfd trend then it retraces before resuming the cfd trend direction - in a downward cfd trend the cfds price moves downward in cfd trend direction and then retraces before resuming the cfd trend direction.

What's a retracement? A cfds price retracement is a pull-back of the cfds price before the cfd market resumes the original cfd trend movement.

Example of Zigzag CFD Price Movement: The example shown below shows cfds price moving up in a zigzag pattern showing cfds price cfd trend and cfds price retracement.

The example shown below shows movement in an upward market and cfds price retracement.

What is Retracement? - What is a CFD Retracement? - CFD Price Retracement Explained With Example

What is Retracement Trading in CFDs?

1-2: CFD Price Moves Up - CFD Trend Direction

2-3: CFD Price Retracement

3-4: CFD Price Moves Up - CFD Trend Direction

4-5: CFD Price Retracement

5-6: CFD Price Moves Up - CFD Trend Direction

The retracement of cfds price is explained on the above example - this represents a cfd retracement in an upwards cfds trend.