Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Swing Trading Gold

Figure # 4.18 - On the morning of November 16, December Gold opened sharply higher and triggered the buy signal at the opening price of $473.70. As soon as the buy signal was confirmed, I took the steps to project the future swing trade date as December 9. I marked the date on the center line and drew the Action/Reaction lines to identify the initial target price of $505.00.

After the higher opening on November 16, December Gold continued to surge higher and remained above the center line throughout the remainder of the trade. It only took 13 days for the futures market to rally over $31.00 and reach the $505.00 target, but it wasn’t finished. Gold continued to make new daily highs over the next seven days before finally reaching a peak at $538.50 on Monday, December 12…three days after the predicted swing trade date!

Figure # 4.17 – August 2005 Gold

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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.