Given a pair of arrows f: Y\rightarrow X and g: Z\rightarrow X with a common codomain, X, their pullback is a pair of arrows u: P\rightarrow Y and v: P\rightarrow Z with common domain, P, such that the equation f\circ u = g\circ v is satisfied, and for which there is the universal property that for any other object W for which there are also arrows m: W\rightarrow Y, n: W\rightarrow Z; there is a unique arrow k: W\rightarrow P such that u\circ k = m and v\circ k = n
(military) the act of pulling back (especially an orderly withdrawal of troops); "the pullback is expected to be over 25,000 troops" a device (as a decorative loop of cord or fabric) for holding or drawing something back; "the draperies were drawn to the sides by pullbacks
After a strong trend the market retraces a small portion of that move before resuming its trend This differs from a consolidation, which trades sideways When a market rises strongly, a pullback may see it decline a small portion of that gain as profit taking steps in before rallying again In reverse when a stock is falling, bargain hunting may lift the stock and see it retrace some of its decline, before declining once again Pullbacks are usually short and small in magnitude (typically less than 30% of the rise)
A temporary drop in price When stocks are trending higher, they will usually pullback for a short rest before resuming the up-trend This is also called a "dip " When prices set new highs in a strong uptrend, always buy the first pullback, or dip Once you are in the trade, look for the previous trend to continue The same is true of stocks that are trending lower They will usually pullback (rise higher) for a short rest before resuming the downtrend When prices set new lows in a strong downtrend, always sell-short the first pullback, or rise
A brief reversal of trend after a breakout from a pattern A pullback can confirm the breakout where price returns to the neckline (or boundary of a triangle) and then rebounds in the direction of the breakout In difficult cases, where multiple necklines can be drawn, a pullback can confirm the location of a neckline