What is going back and forth?

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One of the questions that many investors ask themselves are the questions that they have to do with technical analysis. And among them, pointing out the knowledge of what is and entails figures as characteristic as the backward and backward movement and how take advantage of them in operations made in the stock markets. As well as the implications they have, among others of the most relevant aspects. Because they can help you in more than one moment to establish the movements that you develop in the stock market from these moments.

Before entering fully into his explanations, it should be noted that both the pull back and the setback can be very practical figures to formalize the buying and selling shares en una bolsa. Dando en todo caso las pautas para ingresar y salir de los mercados de renta variable. Desde luego, serán una herramienta poderosa que le ayudará a rentabilizar sus ahorros. A través de un mayor éxito en cada una de las operaciones que se rigen bajo esta strategy de inversión.

Sea cual sea el caso, el mayor problema que existe para la aplicación del retroceso y retroceso es que requieren un Level of learning that not all small and medium investors have today. You may have to experiment with these important stock market figures through virtual trading. Without having to expose your money to unnecessary risks that can give you more of a dislike from now on. Regardless, you can correct this problem now are the following explanations.

The backward movement as the main figure.

This stock market figure is essential for you to return to carry out operations in the stock market with greater protection and to be able to get the most out of it. Well the recoil is just a recovery movement what the price of an asset does after losing a support zone in its fall. It is easy to detect because this area is visible to all investors because it is at very well defined levels by means of a graph. In other words, it consists of movements back to that lost support or what is the same, it is the return to the original price.

Backtracking is quite common, and can't be confused with a Change of trend, as is the case with investors with less experience in this type of operation. On the other hand, it has a very high upside potential, even stronger than before and that can be used to access or open positions in the stocks affected by these special movements. In spite of everything, if the support level breaks, the retracement is canceled to begin to develop a new bearish stage.

How to operate in this figure?

Whatever the case, recoil needs a very different treatment if you want to get the most out of it from now on. Because in reality, you can't forget that its duration is very fast since it takes place in very few trading sessions. This is another of its most relevant characteristics and what distinguishes it from other stock market figures. Very useful to achieve large capital gains in a very short time and therefore you must be very attentive to its appearance. They are shown in the graphs where the evolution of share prices is reflected.

On the other hand, it is also very important that the pull back be a figure eminently to make corrections in the securities portfolio. Because once the price returns to the point where the breakout occurred, it returns to the minimum zone in which the price recovers. As a result of this very special trend, in the end the immediate effect is that the downtrend line is broken. What does the retransmission of these movements mean? Well, something as simple as that we are facing a strong signal of a bullish movement that investors cannot miss.

Retracement technical explanation

This stock market movement simply implies that a behavior pattern is generated that is formalized in four phases until the original price is recovered. In other words, an area that investors with more experience in equity markets call a breakout. To the point that it is very valuable information to perform two types of movements that we expose you below.

• The most opportune moment you can buy a security in order to make it profitable at the highest level of satisfaction.
• At the point from which you must formalize the entry to a price more than adjusted sell it at a better price at the time of undoing the positions in the securities affected by this figure.

From this general scenario, one of the most important aspects that deserves to be analyzed is the fact that it is very important to assess how far one can go. Because in fact the opportunities are very wide and it is very complex to limit or direct them to a more or less stipulated period of time. Not surprisingly, if the recoil is characterized by something, it is because it is one of the figures easier to recognize. This is one of the advantages generated by the application of this investment strategy and that can be developed without excessive problems, even for investors with less experience in this type of operations, which are so special and beneficial for their personal interests.

What is recoil?

Otra cosa muy distinto es el contents de esta figura bursátil y aporta una serie de diferencias que son muy fáciles de comprender. Pero a la vez muy rentable para rentabilizar las aportaciones monetarias en el sector bursátil. Como en la anterior figura bursátil, es una herramienta exigente para channel the purchase and sale of shares in the bag. Therefore, its usefulness is twofold, as you will have the option to see below. So that from this dynamic, you can take your most priority strategies in the equity markets.

Because it cannot be forgotten that the figure known as the backward movement is configured as a movement opposite to the previous one. In other words, the difference is extremely easy to corroborate, since a setback is a backward movement thereafter from a break to the downside, while the pullback is a move back from a breakout to the upside. So its application is for the opposite, since it has bearish connotations and is a clear warning to market the stocks that you have in your portfolio.

On the other hand, it is as easy to detect as in the case of a reversal and can only be confused with a change in the downward trend as a result of selling pressure from investors. Another mistake that trading users can make is that they may think that the price is indeed breaking a resistance or a support level. Because they are in a position to be confused or basically identify them with most indicators and technical analysis oscillators, such as RSI, MACD or Bollinger Bands, among some of the most relevant figures in the stock market. One of the keys to taking advantage of the information that these figures can give us is knowing how to distinguish them with some clarity. Not surprisingly, it has gained a lot of ground when it comes to its application to your trading in the stock markets.

Purpose of these movements

De cualquier manera, un aspecto que estarás considerando en este preciso momento es el target que se están marcando estas importantes cifras de la Bolsa. Bueno, nunca olvides que estos son movimientos hacia atrás. Donde la ruptura de un cierto technical price level. Above other considerations of a technical nature and that is why they are very interesting for trading operations that require more reflection to verify the direction of the movements and if there is any type of change in the price of the securities.

On the other hand, and in summary, show that these figures are a great possibility to carry out the purchase and sale of securities. From this dynamic, if what we are facing is a bullish escape, the retracement means that it is the opportune moment to develop purchases. While, on the contrary, if we are in a bearish figure, the retracement is the signal that it requires to channel the sales. Because you run the serious risk that stocks will deepen their fall with greater virulence and you may lose money on the investment you have made so far.

On the other hand, it also opens the opportunity for you to enter a movement that has begun and from which you had been left out due to some circumstance. As you can see, its usefulness is one of its most relevant characteristics and that you can take advantage of now.