Pullback: meaning, definitions and examples

Used in the context of a temporary decline in the price of an asset from its recent highs. This usually refers to a short-term drop before the price continues its upward trend.

• After reaching a new high, the stock experienced a brief pullback before continuing its upward momentum.
• Traders are watching for a pullback to buy more shares.

Used to describe a temporary reversal in the direction of a financial asset's price, indicating that the price could soon resume its previous direction. This term is often used in technical analysis.

• The currency pair showed a retracement, suggesting it might bounce back to its previous highs.
• Analysts are predicting a retracement before the price continues to climb.

Typically used when referring to a significant decline of 10% or more in the price of an asset or market after reaching a peak. It usually implies a longer-term decline than a pullback.

• The market entered a correction phase after the index dropped by 12% over the past week.
• Corrections are natural and can present good buying opportunities.

Used for a quick, temporary decrease in the price of an asset. Often used in a casual context and usually implies a short-term slight drop.

• I bought more shares during the dip.
• The crypto market saw a dip after the news announcement.

This is usually used in military or financial contexts. In a military sense, it means a tactical move where forces are repositioned to avoid engagement or to prepare for a counter-attack. In finance, it refers to a temporary decline in stock prices after a peak.

• The troops made a pullback to regroup and assess the situation.
• Investors saw the pullback in the stock market as an opportunity to buy shares at a lower price.

Used primarily in military contexts to describe a strategic withdrawal from an enemy to avoid defeat. It can also be used in a broader sense to indicate pulling back from a difficult or uncomfortable situation.

• The general ordered a retreat to preserve the remaining forces.
• After the heated argument, she decided that a retreat to her room was the best course of action.

This can refer to the act of pulling out troops, funds, or participation from an activity or place. It often has a formal or official connotation.

• The government's sudden withdrawal of troops from the region surprised many.
• There was a significant withdrawal of funds from the account following the scandal.

This term is used in both military and corporate settings to describe the action of relocating resources or personnel to a new area or task.

• The company announced a redeployment of its staff to focus on the new product line.
• The military's redeployment of troops to the border was seen as a strategic move.