What is the typical frequency of pullbacks after a breakout?

The typical frequency of pullbacks after a breakout is generally considered to be around 50% of the time. This means that after a breakout from a significant technical level, such as a resistance level or a trendline, it is quite common for the price to retrace or pull back to test the breakout point before continuing in the original direction of the breakout. This behavior is often seen in trending markets and indicates that market participants are reacting to the breakout by either taking profits or adjusting their positions.

In technical analysis, a pullback after a breakout can signal that the breakout is legitimate, as the pullback allows for a retest of support or resistance. A price retracing to near the breakout point usually reassures traders that the momentum behind the move is strong enough to sustain movement beyond the breakout level, hence confirming the trend.

The other options suggest different frequencies that are either too high or too low. A frequency of 25% would imply that pullbacks are relatively rare, which contradicts observed market behavior, as many breakouts do experience some degree of retracement. A frequency of 75% would overstate the tendency for pullbacks post-breakout, making it seem that pullbacks are nearly guaranteed, which does not align with the number