By: John Crane, swing trading guru
Figure # 6.8 - The low of the Reaction swing was 73.25 and occurred on July 8, marked as (C). The Reaction swing ended after a pivot high was confirmed on July 20 (D).
Day one – July 23 – Breakout Bar – Coffee broke below the pivot low support of 73.25 and closed at 73.15.
Day two – July 26 – Coffee continued the downward slide and closed at 72.00.
Day three – July 27 – The futures market was quiet and traded in a very small price range, but managed to close lower for the third day in a row.
The downward trend was solidly intact and continued lower into the projected date.
Figure # 6.8 - December 2004 Coffee
**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.