Run

Reviewed by Apoorva | Updated on Aug 27, 2020

Introduction

In technical analysis, a run is a series of consecutive price variations that occur in the same direction for a particular security, index, or sector. It is a prolonged uptrend or downtrend that includes daily gains/losses.

Understanding Run

If a stock's price has increased each day for five trading sessions, it is known as a bull run or a rally. Similarly, a bear run consists of consecutive days of downfall. Runs that follow patterns, such as a bear run followed by a bull run, are referred to identify technical levels for entry or exit from a trade.

Factors to Consider

  1. The underlying volume behind the move acts as an indicator of the strength of the run. Traders may also consider factors, such as other technical indicators and chart patterns.

  2. There is no set period of time that classifies a run. However, three or more consecutive price increases/decreases are considered a run.