Pullbacks and Throwbacks
Most often used in breakout strategies, pullbacks and throwbacks allow traders to confirm a breakout in a certain direction without sacrificing a good entry price to do so. The trade-off is that if a pullback or throwback does not occur and the breakout continues then the trader might miss out entirely.
A pullback occurs in a downtrend the price breaks through a support level and then retraces to that former support level (now resistance). A common trading strategy is to then enter short at or near that resistance level as many traders who missed out on the breakout now want to enter short.
A throwback is similar to a pullback but occurs in an uptrend after break of resistance.
Trading tip: the stronger a support or resistance level is (which usually correlates with higher timeframe charts) the more significant a breakout is. Very strong levels might have lots of stops behind then and produce a strong short squeeze or long squeeze situation. In those cases a pullback or throwback or is still possible but might take more time to develop. It is always best to wait for a sustained break of important levels to avoid false breakouts.