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Pullback
Definition
Pullback
Counter-movement within an expansion that stays contained, does not reach the wrong point, and is followed by resumption.
Full Explanation
A pullback belongs to the expansion. It is normal and expected — the dominant side overrunning opposing liquidity does not mean the opposing side stops trying. A pullback has these mechanical characteristics: it stays within the territory of the expansion, does not generate significant overlap with prior structure, does not reach the mechanical wrong point, and counter-direction candles show wicks dominating bodies. Critically, it is followed by resumption. Distinguishing a pullback from invalidation is one of the hardest real-time challenges in trading — which is exactly why the mechanical wrong point exists as the binary answer when the distinction is unclear.
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Chapter 22 · Structure and Thesis
Pullback or Invalidation
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