About Types of Swing Trading Style Runs
Support and resistance are often areas of Technical Analysis that are not fully understood. This week the lesson will be on support for Swing Trading which includes Momentum Runs, Velocity Runs, Volatile Runs, and Intraday Swing Style Runs.
Swing Trading is a “one run” trading style, which can be as short as a few minutes intraday or as long as 10-12 days depending upon whether it is a Standard Swing Run, Momentum Run, or Velocity Run.
Swing Trading runs also appear in volatile conditions, as two major Market Participant Groups collide buying and Dark Pools control vast quantities of shares of stock, trillions in assets worldwide and use the largest lot orders.
Dark Pools are giant and large Institutions both on the Buy Side and Sell Side and when they buy, this creates underlying energy building as they remove liquidity on the buy side with their large lot accumulation activity.
Support is less viable when the giant Institutions are not actively buying the stock, and price can overreact to even minor profit taking by the Professionals who also use larger lots.
The chart example below had a Standard Swing Run out of an extreme sell-off price action.
Martha Stokes CMT
TechniTrader technical analysis using a MetaStock chart, courtesy of Innovative Market Analysis, LLC dba MetaStock
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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