Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Swing Trading Microsoft

Figure # 2.16 - The September 29th swing trade date, the highest closing price of the correction, was followed by a price collapse into October 11, where it finally bottomed at 24.25.

The October 11, low proved to be significant when the stock market timing turned higher and traded into the 20-day SMA where it posted a high close at 25.09 on October 19. This high was followed by two consecutive lower closes that confirmed October 19 as a high pivot point and the beginning of a new bullish Reaction swing strategy. The two-day retracement ended with a low of 24.57, just slightly more than 60%. This put the stock market timing inside the buy window and confirmed the pattern sequence as a possible SWING TRADING STRATEGY RT-1 pattern. The trigger price of 25.02 was hit on the following day and buy was confirmed.

microsoft chart20
Figure # 2.16 – Microsoft – (MSFT)

The reverse count equaled 18 days, which in turn projected a future swing trade date of November 16. After triggering the buy signal at 25.02, Microsoft continued to move higher over the next 18 days and reached 27.88 on September 23. The swing trade date missed the major high by two days!

A major SWING TRADING STRATEGY TR pattern generated a major sell signal followed by another SWING TRADING STRATEGY TR pattern that generated a major buy signal, both offered significant trading opportunities with limited risk.

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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.

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