A risk of a Flash Crash is not the start of a Bear Market. Flash Crashes are uncommon in indexes and more common in individual stocks during earnings season and when there is a major negative news item that is unsupported by actual hard data.
Retail news creates fear and uncertainty often with information that is not always accurate or that is stated in a way to create fear of a NON EVENT.
A non event is something that might happen.
Flash Crashes also occur on individual stocks when HFT AI misinterprets news.
Oftentimes, a company's earnings announcement may be minimally lower than estimates but the HFT AI gaps it down hugely.
In these situations, Dark Pool Buy Side will move in and support the stock by buying shares at bargain prices as the stock value is below the company fundamentals. This happens often.
When you can recognize these patterns of huge gap downs and then recovery a few days to weeks later, there is the opportunity to trade the stock for swing style or platform position style trades to net good profits from the Flash Crash recovery.
April 2025 had an Index Flash Crash that recovered quickly with Buy Side Institutions buying index components quickly and driving stock prices back up to the lows of the fundamental level. The indexes then resumed their uptrends with minor corrections.
Retail news creates fear and uncertainty often with information that is not always accurate or that is stated in a way to create fear of a NON EVENT.
A non event is something that might happen.
Flash Crashes also occur on individual stocks when HFT AI misinterprets news.
Oftentimes, a company's earnings announcement may be minimally lower than estimates but the HFT AI gaps it down hugely.
In these situations, Dark Pool Buy Side will move in and support the stock by buying shares at bargain prices as the stock value is below the company fundamentals. This happens often.
When you can recognize these patterns of huge gap downs and then recovery a few days to weeks later, there is the opportunity to trade the stock for swing style or platform position style trades to net good profits from the Flash Crash recovery.
April 2025 had an Index Flash Crash that recovered quickly with Buy Side Institutions buying index components quickly and driving stock prices back up to the lows of the fundamental level. The indexes then resumed their uptrends with minor corrections.
Martha Stokes, CMT
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
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Martha Stokes, CMT
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
関連の投稿
免責事項
これらの情報および投稿は、TradingViewが提供または承認する金融、投資、取引、またはその他の種類の助言もしくは推奨であることを意図したものではなく、またこれらに該当するものでもありません。詳細は利用規約をご覧ください。