Swing Trading Futures overnight

Discussion in 'Index Futures' started by antares66, Nov 24, 2021.

  1. easymon1

    easymon1

    Last edited: Nov 25, 2021
    #31     Nov 25, 2021
  2. 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
     
    Last edited: Nov 25, 2021
    #32     Nov 25, 2021
    rb7 likes this.
  3. Says who? Most professional traders have holding periods longer than a month!

    GAT
     
    #33     Nov 25, 2021
  4. easymon1

    easymon1

    upload_2021-11-25_12-10-36.png delete bsht.jpg
     
    #34     Nov 25, 2021
  5. #35     Nov 25, 2021
  6. easymon1

    easymon1

    You make a good point.
     
    #36     Nov 25, 2021
  7. easymon1

    easymon1

    Do you see a directional change in price in this chart?
     
    #37     Nov 25, 2021
  8. 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
     
    #38     Nov 25, 2021
  9. easymon1

    easymon1

    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
     
    #39     Nov 25, 2021
  10. RedSun

    RedSun

    As I said, it is a broad definition. You can say it is a holding or trading position for one month. No difference.
     
    #40     Nov 25, 2021