This article first appeared on GuruFocus. Nvidia (NASDAQ:NVDA) capped off 2025 as the unquestioned leader of the AI chip boom, and Wall Street expects
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Markets never move in a straight line. They can rise, fall, bounce back, reverse, and, very often, trend. Thesemovements are called market swings. Understanding themmakes for some of the greatest traders. Platforms that take advantage of short- and medium-termprice action, require you to master these components, to be able to build long-term profitable strategy. If you want to profit from either trading or investing, mastering marketswings is essential, even if many people don’t realise this. That is why today we decided to make a guide about usingthese dynamics, and building a strategy that could takeadvantage of them. Market swings, and why they matter Market swings are patterns where price moves either: • upward (trending, making higher highs and higherlows); • downward (lower highs, lower lows); • sideways (bound within range). All swing trading strategies rely on recognizing which oneof these 3 patterns you are currently in. Some traders can do it with just a side-glance, others meticulously drawmany lines on the chart. In either case, the challenge issimple: to understand which overall move you are currently in, and
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