Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Trading British Pound Trend Continuation (Swing Trading Strategy Market Timing Strategy TC)

Figure # 3.3 - In this example, the SWING TRADING STRATEGY RT-1 pattern triggered a buy signal at 1.7430 and projected a swing trade date for April 19. The June 2006 British pound posted a high of 1.7951 on April 19 and closed at 1.7936.

The British pound formed a three-day Reaction swing strategy between April 24 (E) and April 26 (D). The SWING TRADING STRATEGY TR-1 signal finished with excellent gain and the MARKET TIMING STRATEGY TC-pattern was confirmed on April 27 when the British pound surged passed the 1.7960 trigger price and closed at 1.8042. At this point, the protective stop should be placed underneath the low pivot bar at (F) and a reverse/forward count done on the MARKET TIMING STRATEGY TC-2-pattern that formed between (E) and (F). The reverse count from (E) back to the high of the previous Reaction swing strategy - April 4 – equaled 14 days. The forward count from (F) projected a future swing trade date of May 16—marked (G)—and forecasted higher prices over the next two weeks. Two days before the May 16 swing trade date, the June British pound peaked at 1.8934 and closed at 1.8897 on May 16. This was another excellent trading opportunity with very little draw down. (The action/reaction method and swing trade date Indicator predicted the end of a two-month trend, weeks in advance!)

bp chart23
Figure # 3.3 – June 2006 British Pound

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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.