Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Swing Trading British Pound

Figure # 5.2 - After a three-day rally into April 19, (E) the June 2006 British pound entered into a sideways consolidation pattern. Three days later—April 24—the British pound closed at 1.7908, followed by two consecutive lower closes of 1.7903 and 1.7864 on April 25 and April 26, marked as (F). The low of the swing pattern – 1.7814 – was well above the high of the previous swing pattern of 1.7630 that occurred on April 5 and above the 20-day SMA. This pattern had all the earmarks of a bullish Reaction swing strategy and suggested the trend was still strong and poised to continue higher.

April 27 opened trading at 1.7860, but quickly surged higher and traded above the April 25 pivot high of 1.7957 (F) and closed at 1.8402. The MARKET TIMING STRATEGY TC pattern was confirmed and the futures market timing continued to trend higher over the next two weeks.

bp chart
Figure # 5.2 – 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.