retracement

noun
re·​trace·​ment | \-smənt\
plural -s

Definition of retracement 

: an act or result of retracing retracement of the outline made it sharper

Love words?

You must — there are over 200,000 words in our free online dictionary, but you are looking for one that’s only in the Merriam-Webster Unabridged Dictionary.

Start your free trial today and get unlimited access to America's largest dictionary, with:

  • More than 250,000 words that aren't in our free dictionary
  • Expanded definitions, etymologies, and usage notes
  • Advanced search features
  • Ad free!

Learn More about retracement

Share retracement

Statistics for retracement

Look-up Popularity

Keep scrolling for more

More Definitions for retracement

retracement

noun

Financial Definition of retracement

What It Is

A retracement is a temporary reversal in the movement of a stock's price.

How It Works

Let's say the stock of company XYZ increased 20% over the course of a day. Anyone who has ever looked at a trend line knows that the price is unlikely to rise continuously throughout the course of the day. Those periods during which the stock price decreases, despite the overall upward trend for the day, are known as retracements.

Why It Matters

Recognizing retracements is important for anyone who performs technical analysis on stocks. Fibonacci Retracements are commonly observed by short-term traders, and are an important aspect of Elliot Wave Theory.

Source: Investing Answers

Comments on retracement

What made you want to look up retracement? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

to make faulty or ineffective

Get Word of the Day daily email!

Test Your Vocabulary

Find the Cousins

  • a-large-tree-with-many-branches
  • Which pair shares a common word ancestor?
Name That Thing

Test your visual vocabulary with our 10-question challenge!

TAKE THE QUIZ
SCRABBLE® Sprint

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!