How is a "throwback" defined in market terminology?

A "throwback" is defined as a retracement from an upward trend, typically occurring when the price of an asset falls back to a previous level of resistance that has now turned into support after being broken above. This phenomenon often happens when the market tests the prior resistance level, providing an opportunity for traders to enter positions before the price potentially resumes its upward movement. The concept is particularly significant in technical analysis, as it helps traders identify points where they might look to buy in anticipation of further gains, based on the idea that support tends to hold.

In this context, understanding throwbacks is crucial for analyzing price movements and planning strategic entry points in a trading strategy.