Retracements/Pullbacks

Discussion in 'Trading' started by AngryBull, Aug 19, 2003.

  1. On Saturday I´m going to start a thread about Retracements/
    Pullbacks and positionsizing.
    But I´m not a native englishspeaker.
    What is the diffence between Retacements and Pullbacks?
    Plain English please
     
  2. fan27

    fan27

    There is NO difference between retracements and pullbacks. At least not how I use the terms.
     
  3. Thank you.
    That was what I Thought.
    I prefer the word pullback.
     
  4. Why wait for Sat.? You already started one! (this one) :D

    kp
     
  5. AngryBull,

    This is not a good omen for your new thread. Why did you not find out first about the difference between retracement and pullback BEFORE saddling ET again with a new thread about which you didn't seem to have the foggiest notion.

    Moderator, is this not crap? If you think so, better act now.
     
  6. Oh Boy!

    :eek:
     
  7. Let's give it a chance.
     
  8. Thanks for nice words Nosense.
    When I was a newbee I catched up a lot of
    good things here on ET.

    My aim was only to try to give some back.
    But don´t worry for "crappwriting" the thread
    is finished before it started.
    I have booked my teetime for saturday.
     
  9. I have yet to see someone state a clear distinction between the two. Here is the way I view and regard them:


    Pullback –

    Following a breakout (penetration of resistance) and breakdown (penetration of support) remorse will set in, the result is a pullback. The pullback is “complete” retest of the previous break out/down.

    i.e. if the price breaks down below support of 28, proceeds to drop lower to 27, and then trades back up to 28. I see that as a pullback.

    Retracement –

    A somewhat “incomplete” pullback that occurs on a break out /down. The incomplete pullbacks become more significant when they occur after a “gap”. You may have heard of 40, 50 and 60% retracements.

    i.e. using the example above, after the price has dropped below support of 28, proceeds to drop lower to 27, and then trades backup to 27.50. I see that as a 50% retracement.

    I have never heard anyone refer to a 100% retracement, and for that reason this is how I make the distinction.


    Hope that helps, and I look forward to any other feedback.
     
  10. Let's not take this crap hunt to a new level. There is enough 'legitimate' crap on this board to worry about. He just asked a question. All it takes is to answer it.
     
    #10     Aug 20, 2003