A revback is a pullback or reversal. Pullbacks are 4 times more frequent than reversals.

Hindsight reveals the nature of a revback. But hindsight is unhelpful for investing.

As a rule of thumb, pullbacks tend to be sharp. The reaction can also be sharp. This happens with battling bots, when algos contend. Such contentious volatility slams minuteability.

By contrast to pullbacks, reversals tend to garner momentum gradually. Some support or resistance level is met and the stock bounces or slides the other way. Reversals may start softly, disguising their determination. These rules of thumb vary in their validity depending on the stock’s character, rumor/news about a stock, and/or market conditions. Smooth moves or jerky volatility may characterize either a pullback or reversal. Such variability makes revbacks a dilemma.

Instantly distinguishing a reversal from a pullback is often problematic. The unpredictability of pullback demise presents peril. The surest entry is to catch a trend is after its 1st consolidation or pullback, at the beginning of a trend’s 2nd step.