What Is Wavelength in the Stock Market?

Wavelength refers to the time required for a complete cycle of a stock's price swing.

In the stock market, there are short-term, medium-term, and long-term trading strategies. Debates over which is better have always existed, but these arguments are often one-sided, analyzing only short-term or long-term investment methods from a subjective perspective. Whether it's long-term or short-term investing, the approach should be determined based on actual market conditions—if the current market wavelength is long, short-term trading is unsuitable, and long-term trading should be adopted; if the wavelength is very short, long-term trading is unsuitable, and short-term trading is preferable. Investors need to adapt to the market, analyzing its rhythm, rather than expecting the market to conform to their trading habits.

How to Execute Swing Trading?

1. Choose an Upward Trend: Stocks in an upward trend are ideal. When the trend begins to form, it's time to establish a position. During the mid-phase, continue building the position, adding on minor pullbacks and reducing on major pullbacks. Maintaining a base position ensures more opportunities.

2. Monitor the Market Trend: Swing stocks often follow the broader market. If the secondary or primary trend of the market is downward, swing trading should be paused. If you are bullish on a stock for the long term and plan to hold it medium-to-long term, enter lightly with a small position, keep a base position, and wait for opportunities to add more.