Retracement
A reversal in the movement of a stock's price, countering the prevailing trend.
Investopedia Says:
An example might be market risk causing a stock's price to pull back. The Fibonacci retracement tool is favored by many traders because of its abilty to identify a price level that a correction may reach before it is able to reverse and continue in the direction of the original trend. Related Terms:
Correction
Fibonacci Retracement
Fifty Percent Principle
Pullback
Reversal
Speed Resistance Lines
Trend |