OK, so what is a 'market swing'? momentum
https://duckduckgo.com/?q=OK,+so+what+is+a+'market+swing'?+momentum&t=h_&ia=web
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Swing Trading Futures overnight
- Thread starter antares66
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https://duckduckgo.com/?q=OK,+so+what+is+a+'market+swing'?+momentum&t=h_&ia=web
That's even more confusing:
"What is a Swing?
A swing can either refer to a type of trading strategy or a fluctuation in the value of an asset, liability, or account."
OK so any time the price fluctuates that's a swing?
"This term commonly refers to a situation in which the price of an asset experiences a significant change over a short period. A swing in the financial markets, which is caused by increased volatility, can be seen easily when the price of certain security undergoes rapid, directional change in value. Investors refer to these sharp shifts in price as a market swing. For example, it is not uncommon to see a major index swing from negative territory to positive territory just before the market close, or after an FOMC interest rate announcement."
OK so if the price changes quickly intraday that's a "swing"? So how come swing trading is any trading at a horizon longer than a day? Surely there's an inconsistency here?
[Also saying that a price change is caused by increased volatility.... is just wrong... volatility is a measure of how much the price is changing, so a large price change will result in a higher estimate of volatility -> not a cause and effect, just maths. That's like saying an upward movement in my speedometer caused the car to go faster.]
"Swing trading is often used by individual investors to capture profits from the day-to-day fluctuations in a security’s price movement. "
... and nobody has told me why it's a 'swing'
Please show me a chart of a swing, and a chart that isn't a swing, and a systematic rule for telling one from the other.
To summarise so far:
"A market swing is a swing in the market"
"Swing trading is a meaningless and unhelpful name for any type of trading with a holding period in an arbitrary range between X hours and Y weeks"
GAT
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You make a good point.
Do you see a directional change in price in this chart?
So a market swing is a period of returns with frequency f r0.... rt for which sign(rN)<>sign(rN+1) for at least one N
Of course that is totally meaningless... since unless t is very small or f is very big, all charts will be swing charts.
GAT
a market swing is a period of returns with frequency f r0.... rt for which sign(rN)<>sign(rN+1) for at least one N
https://duckduckgo.com/?q=a+market+...N)<>sign(rN+1)+for+at+least+one+N&t=h_&ia=web
As I said, it is a broad definition. You can say it is a holding or trading position for one month. No difference.