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What does swing mean in stocks?

For a list of common terms and definitions see the Wikipedia page: Swing.

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Swing is not a swing in the sense of a change in direction. It is a shift in timing from one direction to another, as a result of the passage of time. The term applies to the action of investors and traders. In the stock market, the difference between a rise and a fall is called a “swing”. This difference can be attributed to the fact that there are many factors that affect the market, which make it vulnerable to a number of potential outcomes. The following are some common characteristics of swings:

A rise can be reversed by a fall.

A decline can be reversed by an upward move .

. The action of the market is subject to change over time.

Some investors think that stocks do not tend to move in a cyclical fashion, but this is not always true. Stock market movements can be triggered by a number of reasons, the most obvious being monetary policy. These policies cause financial markets to move in a more conventional fashion, by increasing the money supply. In this case, the market swings are caused primarily by changes in the supply (or demand) of money.

When will it end?

The market will always be a dynamic game, and a number of things can take place to bring an investor back down to a lower swing level. In an example from the early nineties one trader put it succinctly when the Dow fell more than 800 points in a single day. When will things settle down?


In a previous article we discussed what will happen to a trader should the market take a downward move. An investor is never safe in a market where the market is in a downtrend, but there are many other factors which can lead to the decline. It may be time for some action from the investors who follow the stocks, and there may be a time when some are forced to sell their holdings. This is not unusual; sometimes the decline is so steep that sellers must sell out or it will be forced to go higher in price – this is called a “bubble.” A stock market decline is not a time for fear or anxiety in itself though, and all it takes for the market to recover is for the market to experience a reversal. For example, when it comes to the 1990s recession there were very different patterns of behavior between different investor segments. Some sold out, some stayed and some invested a lot more money. As a result, the market went