Pullback
Definition
A temporary decline in price during an overall uptrend, providing buying opportunities.
Detailed Explanation
A pullback is a brief reversal in an asset's price trend. In an uptrend, a pullback is a decline that doesn't violate the overall trend structure (price stays above key support/moving averages). Pullbacks are healthy - they allow trends to 'rest' and consolidate gains. Traders use Fibonacci retracements and moving averages to identify pullback entry points. Buying pullbacks offers better risk/reward than chasing breakouts.
Example
MSFT rallies from $350 to $400, then pulls back to $380 (50% Fibonacci). This is a buying opportunity if the uptrend remains intact.