Use Swing High / Low

Use Swing High / Low as the Stops -

Swing high and lows are for the most part cycle highs and lows. We view cycle high and lows as resistance and support. 

These level can work to give the market more room to work it out. Meaning, the markets will move range trade from high to low to high to low. When they start to trend trade, swing high and lows seem to allow traders to stay in for the bigger moves.

We have a model on swing highs and lows that suggest the markets take them out and fall back a lot. This is normally in the case of the swings in the direction of the trend. Meaning, if trend up, then markets trend to take out swing highs and fall back and these are suggestive profit targets for longs. 

But, in the case, the market is trend up, then swing lows can work for stop points.  


Past performance is not necessarily indicative of future results.


Futures, Options on Futures and Forex trading involves a substantial degree of risk of loss and is not suitable for all individuals. An investor could lose the entire investment or, in some cases, more than the initial investment. Past performance is not necessarily indicative of future results.