Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Swing Trading Wheat

Figure # 5.11 - September Wheat reached a high of $4.40 on the May 22 swing trade date, (E). The following day the futures market closed lower and continued lower over the next three days before trading higher into May 30, (G). Six days into the correction the September Wheat had formed a new bearish Reaction swing strategy that indicated the upward trend is over and a new trend had begun. The futures market timing continued lower for the next twenty-one days.

wheat chart22

Figure # 5.11 – September 2006 Wheat

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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.