Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Trading Gold Trail

Figure # 6.26 - August Gold reached a new 20-day high on the June 23 swing trade date. The trail day did not trade above the swing trade date high, but it did finish the day as an inside day with the closing price lower than the opening price. The preliminary indication was for the futures market to turn lower, but it was two days later before the futures market broke below the trail day low and closed below the previous low.

The trend reversed, as the trail day had suggested, and continued to trade lower over the next several days. The swing trade date and trail day combination had identified the major high and confirmed a significant reversal in the futures market.

The “Market Tells” forewarned of three great trading opportunities in the August Gold. A “Tell” appeared at both major highs and the low at (B). Can you identify them?

gold trail
Figure # 6.26 – 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.

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