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Retracement


What does Retracement mean?

In trading, and specifically in charting patterns, a Retracement is what is referred to when a futures contract (or stock, or whatever you’re charting and trading) does exactly the opposite of what it previously did.

Futures Knowledge Explains Retracement

So if for 5 days the futures price went up, the next few days the price may return back along the exact same path.  Think of it as the futures contract retracing its own steps.



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