What is Run?
Technical analysis uses the term "run" to describe a security's price moving in the same direction, up or down, for multiple trading days. This sustained movement can be a strong uptrend or downtrend.
Run Explained
When a stock's price goes up for several trading days in a row, that's a bull run, also known as a rally. Conversely, a bear run describes a period of consecutive price declines. Technical analysts use these runs, especially when they follow specific patterns like a bear run after a bull run, to pinpoint entry and exit points for trades.
Factor to Consider
While there's no strict timeframe defining a run, most traders consider three or more consecutive price moves in the same direction as a run. The strength of this run is often judged by the trading volume behind the price movement. Additionally, technical analysts consider other signals like technical indicators and chart patterns to confirm the significance of the run.