Swing research operates across several sessions, which makes overnight gaps, corporate events and broader market structure part of the plan.
Move from market to sector to stock
Start with the broad index and sector before evaluating the stock. A strong chart in a weak sector can require a different level of confirmation.
- Market regime
- Sector relative strength
- Stock trend and volume
- Liquidity
Map catalysts and calendar risk
Results, corporate actions, policy events and industry developments can create gaps. The holding plan should identify known dates before entry.
Use a multi-session risk plan
Entry, invalidation, quantity and review frequency must allow for normal swing movement without ignoring capital risk. Stops do not guarantee protection from overnight gaps.