What's Retracement Explanation?

The price of a instrument does not move upwards or downwards in a straight line. Instead the price moves upward or downward in a zig-zag setup called a trend

Upwards trend - the price moves upward in a trend then it pulls back before it resumes the upwards trend direction

Down-wards trend - the price moves down ward in trend direction & then retraces before resuming the downward trend direction.

What Does Retracement Mean? A trading price retracement is a pullback of price before the market resumes original trend movement.

XAUUSD Retracement Explanation & Retracement Definition - Examples of a Retracement Pattern

What's Retracement Meaning? - What Does Retracement Mean?

Explanation of Retracement Pattern

1-2: Price Moves Up - Trend Direction

2-3: Price Retracement

3-4: Price Moves Up - Trend Direction

4-5: Price Retracement

5-6: Price Moves Up - Trend Direction

The retracement definition of price is illustrated on the above examples - this represents a retracement in an up-ward trend.