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.
  • Pullback
In a pullback the price breaks the line of support from the top, for a short moment, returns back and transforms support into resistance from which it reverses. A pullback is also referred to a as retracement or a consolidation. Graphically it can be represented by Fig 1 Below.
Fig 1: Pullback illustration
  • Throwback
A throwback is the opposite of a pullback. It occurs when the price breaks the line of resistance from the bottom, return and creates support from th…
Read article
Translate to English Show original