Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Swing Trading Dell

Figure # 6.20 - I wanted to show this chart of Dell Inc. and the swing pattern failure at (A) to (B) because this pattern is a little different than the previous patterns illustrated; it has three closes below the previous pivot low at (A). More often that not, this type of pattern would continue lower and provide a reliable trade signal, but DELL broke through the resistance and turned higher. Nevertheless, this is a very good illustration of the importance of moving the protective stop to the entry level after the third closing price beyond the previous pivot low.

dell computer chart
Figure # 6.20 – Dell Inc. (DELL)

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**THE RISK OF LOSS IN TRADING CAN BE SUBSTANTIAL. YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER OR OVER-COMPENSATED FOR THE IMPACT IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT.NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES.