What is a Pullback?

The commodities price of a commodity instrument does not move up or down in a straight line. Instead the commodities price moves up or down in a zigzag pattern called a commodity trend - in this pullback pattern the commodities price moves upward in a commodity trend then it retraces before resuming the commodity trend direction - in a downward commodity trend the commodities price moves downward in the commodity trend direction and then retraces before resuming the commodity trend direction.

What is a pullback? A commodities price pullback is a pullback of the commodities price before the commodity market resumes the original commodity trend movement.

Example of Zigzag Commodities Price Movement: The example illustrated and explained below shows commodities price moving up in a zigzag pattern showing commodities price commodity trend and commodities price pullback.

The example illustrated and explained below shows movement in an upward market and commodities price pullback.

What is a Pullback? - What is a Commodities Pullback? - Commodities Price Pullback Explained With Example

1-2: Commodities Price Moves Up - Commodities Trend Direction

2-3: Commodities Price Pullback

3-4: Commodities Price Moves Up - Commodities Trend Direction

4-5: Commodities Price Pullback

5-6: Commodities Price Moves Up - Commodities Trend Direction

The pullback of commodities price is explained on the above example - this represents a commodity pullback in an upward commodities trend.