Pullbacks & Continuations

A pullback is a pause or retracement within a larger move. Healthy pullbacks usually show controlled selling in an uptrend or controlled buying in a downtrend. They relieve short-term pressure without destroying the main structure.

A continuation setup forms when the pullback holds a logical area and price begins moving back in the trend direction. Confirmation might include a reclaim, a higher low, a lower high, or momentum returning after a shallow retrace.

Not every pullback is worth buying or selling. If the pullback is sharp, breaks key structure, or returns too deep into the prior impulse, it may be a reversal warning. Your job is to separate a pause from a real change in control.