Identifying patterns in forex trading, forex binary options trading or touch binaries can be a game changer, resulting in huge success. Pullbacks and throwbacks are one of the man patterns that traders could make use of, especially in binary options trading.
This article discusses the definition of pullbacks and throwbacks, their differences, how to spot them and some practical information for a binary options trade.
What is pullback and throwback?
In general terms we can define the terms pullback and throwback as the return of the price to the predefined line of support or resistance, which was already broken, following which there is a classic example of support and resistance role switch.
Fig 1: Pullback illustration