Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Downward Market Timing

The process is similar when the futures market is in a downward trend. The reverse count begins with the first price bar to the left of the beginning of the Reaction swing and counts in reverse to the lowest close of the previous Reaction swing.  (In a downward trending futures market, the beginning is the lowest closing price of the low pivot point before the correction.) The forward count begins with the first price bar to the right of the highest close at the end of the Reaction swing and counts forward the same number as the reverse count as shown in Figure #2.6

swing trading knowledge base pic 4
Figure # 2.6 – Reverse/Forward count in down trending futures market.

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.

Swing Trading, Market Timing, Swing Trading Strategies and Reversal Commentary ©2005-2009 reversaltracker.com All Rights Reserved.