The Joys of Swing Trading Using Closing Prices

Today’s session reminded me why of I made the decision years ago, to swing trade using closing prices only.

Kicking off the new year with a sizable gap higher, followed by early morning strength triggered a lot of names on our watch-list.

Most of those triggers happened just 30 minutes into the day, which would have left us a with a handful of underwater entries just an hour or so later as markets retraced to nearly flat on the session.

$DE was one watch-list name that looked great in the morning near all time highs but ultimately saw a fade back to resistance into the close.

(It still looks pent up and primed, but it wasn’t ready today)

By waiting until the end of the day to see if a stock can hold its breakout level, you’ll have more confidence that the move is reliable for an entry.

Current Market Outlook

Despite major averages not closing at their highs, we still favor markets to the upside based on various measures of breadth.

We put on two new swing longs today that are emerging from great looking technical bases, both of which have an anticipated hold time of about 3 to 5 days.

For more info about how we trade, or to receive trade alerts and daily market analysis, check out this page. 

Thanks for reading, and good luck out there.

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Evan Medeiros

Evan is the founder of the Trade Risk. With 25 years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

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