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
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.
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.
I have yet to see someone state a clear distinction between the two. Here is the way I view and regard them: Pullback â Following a breakout (penetration of resistance) and breakdown (penetration of support) remorse will set in, the result is a pullback. The pullback is âcompleteâ 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 â A somewhat âincompleteâ pullback that occurs on a break out /down. The incomplete pullbacks become more significant when they occur after a âgapâ. 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.
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.