Tag Archives: Throwback

What is Pullback and Throwback?

If you are often confused with this terminology, than read it further, your confusion will get clear.

According to classical book – Technical Analysis of Stock Trends By Edward, Magee.

PULLBACK

PULLBACK

Pullback is refereed as return of prices to the boundary of the pattern after a breakout to the downside.  Which means after any breakdown from price pattern, prices again come up to retest the boundary line or neckline of pattern, as shown in below attached figure.

 

 

 

 

 

THROWBACK

THROWBACK

 

Throwback is referred as return of prices to the boundary line of the pattern after a breakout to the upside.  Which means after any upside breakout from price pattern, prices again come back to retest the support or neck line of pattern, as you can see in below attached figure.

 

 

 

Over and above, John Bollinger in his book Bollinger on Bollinger Bands mentioned and depicted exactly opposite to what we said above.  According to him, Pullback is referred to price movement against the primary trend that does not interrupt that trend.  And in all shown example he has mentioned accordingly.  We respect author and his work, but we like to go with native definition and application.