Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Swing Trading E-mini 60-min Chart

Figure # 5.16 - The chart is a classic example of the three-wave zigzag pattern connecting two bullish trends. The December E-minis had formed a bullish Swing Strategy TR pattern between Friday September 22 (B) and Monday September 25 (D). The 60% rule, the trigger price of 1160.50, was hit during Monday’s session and the buy signal was confirmed.

The reverse count from (B) to (A) equaled 28 price bars or 28 hours. The E-mini continued higher, but began to consolidate mid way through the September 27 session, but managed to breakout and peak 2 hours after the projected Reversal bar marked (E).

Figure #5.16 – December 2006 E-mini S&P 500 – 60 minute chart

Back to homepage

**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.