A temporary drop in price. When stocks are trending higher, they will usually pullback for a short rest before resuming the up-trend. This is also called a "dip." When prices set new highs in a strong uptrend, always buy the first pullback, or dip. Once you are in the trade, look for the previous trend to continue. The same is true of stocks that are trending lower. They will usually pullback (rise higher) for a short rest before resuming the downtrend. When prices set new lows in a strong downtrend, always sell-short the first pullback, or rise.