Documentary Episode Seven

I had an argument with him at noon. I asked him why he wanted me to open an order at this position? Isn't it on a downtrend? If I open an order at this position, am I not going against the trend? Wouldn't I lose money? Then he asked me if I understood what a technical pullback is! So I asked him what a technical pullback means and what aspects it refers to!
He said to me:
The overall trend is upward now, and a 3% correction is also very necessary. The reason is this.
The first callback allows long positions that were bought at a low point to take profits during a retracement, enabling timely profit-taking. This retracement tactic allows them to take profits on their long positions with minimal gains.
Second, it can cause those who have recently chased after long positions to panic, thinking they have made a wrong move. They fear being trapped in their long positions, so they sell at a loss.
Third, attract more people to short, making them think that this is the peak and they can short now. This is also the main profit.
Fourth, it can allow short positions that are already trapped to add to their positions, because they feel hopeful; adding to their positions can help them break even, but this will accelerate their liquidation.
I don't really understand what he said either. Anyway, I've already lost 1000 RMB listening to him. If it drops more and I lose more money, I'll go find him to settle the score and make him pay me back.