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retracement

retracement

1 8.9
A short price move against the main trend in markets
  • noun
  • /rɪˈtreɪsmənt/
  • Specialized
translation icon : retroceso
  • Japan's economy slumped badly in the second quarter of 1997, when the government withdrew stimulus, believing that the yen's partial retracement of its steep appreciation up to April 1995 had enabled Japan to sustain growth without monetary and fiscal support.
  • 38.2% retracement

The technical analysis implies this is a retracement, but there's still fear.

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Examples

  • We had also talked about Apple stock and the fact that it had made a Fibonacci retracement into a buy zone.

    Blog text (23)
  • The market is experiencing a temporary retracement as investors react to recent news before continuing its upward trend.

  • The technical analysis implies this is a retracement, but there's still fear.

  • The problem with this strategy occurs during ranging markets or when the crossover is a retracement of the current trend.

    Blog text (12)
  • And when we look at the Fibs, the FIB retracement lines, we actually have an important number that we're sitting at right now.

  • And if you screw up then because, you know, because your Fibonacci retracements were wrong or whatever, like that's on you.

  • Technically, the stock is still in an uptrend, yet has performed a nearly 50% retracement from the near-term high of $6.50.

    Blog text (8)
  • Rather, this painful retracement (for the central bank) is a sign of the slide of the euro's health and Europeans' demand for shelter from the Euro area's storm.

    Blog text (28)
  • Assuming a short-term low is in (we are entering bullish seasonality), you can see the 50% retracement from the September highs up at 1408.93.

    Blog text (27)
  • After a significant drop, analysts expect a brief retracement in the stock price before it resumes its previous upward movement.

Synonyms

reversal
vsretracement
25 4.2

A change to the opposite direction or position, for example when wind turns

is specifically a brief opposite move that ends when the main trend continues
countertrend
vsretracement
7.4

A movement that goes against the main trend, often in markets

is a short move against the trend that then resumes the original direction

Antonyms

uptrend
  • Specialized
2 4.0

A time when prices or values keep rising in markets

How Deep

crash
89 5.2
retracement
  • Specialized
1 8.9
correction
  • Literature
23 6.3

Surface Forms

retracement singular
retracements plural

Morphology

retracement = retrace (semi-transparent) = re + trace + ment

The immediate base 'retrace' is a straightforward re- + trace formation meaning 'do again', so its relation to the base is clear.

Etymology

Retracement comes from re- ('again') and trace ('to follow a line'), so in finance think of a price 'drawing back' a little before it continues, which is why a retracement is a short reversal in a trend.