A price swing occurs when something is traded at a price point and the price declines below that price point.
If two people buy a stock at a price of $100 and they sell it at $70, the price of the stock is still $100. Therefore the price change is not a price wave. If you sell that stock, the price will bounce back to $90.
For more information about price swings, see What is a price wave?
What happens when price swings move too far apart?
A price oscillation occurs when we experience a small but continuous price movement that is not accompanied by a change in price.
How can I tell when a price oscillation occurs?
If there are only two price points in a market, then a price oscillation appears to occur at the end of the two price points during the peak of the oscillation.
If the two price points occur at different times, the price oscillation will take a longer or shorter amount of time to occur, depending on the amount of separation between price points.
What happens if I get no feedback?
It’s not easy to find out when it is time to sell a stock. If the stock has not yet started moving, there may not be any way to tell when the stock might reach a low or high without more information. Therefore, you need to use other methods to find out when to sell a stock.
How do you tell when the market is moving to the higher or lower side of the trade line?
For higher side, simply look at the price chart when the line is not fully flat, or when market depth is low. When the price reaches the lower side of the trade line, the price is at equilibrium.
For lower side, you need to look for the difference at the upper or lower side of the trade line.
Can I tell when the price is moving lower or higher?
No, it’s very difficult to determine when the price may be to lower or higher than its peak. There may be a lot of other factors affecting the market. So it is difficult to predict that when that price will hit equilibrium and begin to rise.
For example, if it takes 10 days for the average price of a stock to peak, then it may be 10 days before its price reaches its equilibrium.
If the average of the weekly earnings of a large company can increase or decrease rapidly, then the price may jump
the complete swing trading course, swing trade scanner settings, technitrader course for sale, stock market advanced course, swing trading vs day trading