What's a Metals Trading Retracement?

What's a Metal Price Retracement in Metal Trading?

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

What is a retracement? A metals price retracement is a pull-back of the metals price before the metal market resumes the original metals trend movement.

Example of Zigzag Metal Price Movement: The example illustrated and explained below shows metals price moving up in a zigzag pattern showing metals price metal trend and metals price retracement.

The example illustrated and explained below shows movement in an upward market and metals price retracement.

What is a Retracement? - What's Metal Trading Retracement? - Metals Price Retracement Explained With Example

What is Retracement Trading in Metals Trading?

1-2: Metals Price Moves Up - Metals Trading Trend Direction

2-3: Metals Price Retracement

3-4: Metals Price Moves Up - Metals Trading Trend Direction

4-5: Metals Price Retracement

5-6: Metals Price Moves Up - Metals Trading Trend Direction

The retracement of metals price is explained on the above example - this represents a metals trading retracement in an upwards metal trend.