A retracement, also known as a price bar, refers to a movement in the opposite direction of the prior time period. In other words, it is a temporary reversal in a stock's price trend. This can occur after a significant increase or decrease in price, and is often seen as a correction in the market. Understanding retracements is crucial in the world of finance, as it allows investors to make informed decisions about their investments. By analyzing retracements, one can gain insights into market trends and potentially make profitable trades.
