What is a Forex Pullback? - Forex Pullback on Upward Trend and Downwards Trend

The price of a forex currency pair does not move up or down in a straight line. Instead the forex price moves up or down in a zigzag pattern called a forex trend - in this pullback pattern the forex price moves upward in a trend then it retraces before resuming the forex trend direction - in a downward trend the price moves downwards in trend direction and then retraces before resuming the forex trend direction.

What is pullback? A forex price pullback is a pullback of the price before the forex market resumes the original trend movement.

Example of Zigzag Price Movement: The example below shows price moving up in a zigzag pattern showing price trend and price pullback.

The example below shows movement in an upward market and price pullback.

What's Pullback? - What's Forex Pullback? - Forex Price Pullback Explained with Example

1-2: Price Moves Up - Forex Trend Direction

2-3: Price Pullback

3-4: Price Moves Up - Forex Trend Direction

4-5: Price Pullback

5-6: Price Moves Up - Forex Trend Direction

The pullback of price is described on the above example - this represents a forex pullback in an upward forex market trend.