5-minute chart of Crude oil

9/9/09 - 11:14 am MST - I am frequency asked if the reversal date swing trading strategy will work for daytrading.  The answer is "yes", when the pattern setup is correct. Here is a great example in the Oct Crude oil. The A-B-C continuation pattern between 6:20 am and 7:40 am provided the foundation for a good trade. The market dipped into the 60% buy window at 7:40 am. The buy signal was triggered at 71.50 ( above the high of the price bar that entered the 60% buy window. This is called the signal bar). The reverse count was 6, 17 and 25. I have them marked on the chart. The forward count to 6 fell on the pivot high of 72.19, offering a  nice short-term swing trade, but the market did not reach the reaction line target objective until bar 17, allowing an exit at 72.40 for a very nice gain.

After a short-term correction, Crude rallied to a new high on the forward count bar "25" where it peaked and turned lower.

5-minute chart of October Crude oil