What's a Stock Trading Retracement?

What's a Stocks Price Retracement in Stocks Trading?

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

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

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

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

What's Retracement? - What's Stocks Trading Retracement? - Stock Price Retracement Explained With Example

What is Retracement Trading in Stocks Trading?

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

2-3: Stock Price Retracement

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

4-5: Stock Price Retracement

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

The retracement of stocks price is described on the above example - this represents a stock retracement in an upwards stocks trend.