Swing Trading and Market Timing Knowledgebase

By: John Crane, swing trading guru

Upward Trending Market

When the futures market is in an upward trend the reverse count will begin with the first price bar to the left of the highest close at the beginning of the Reaction swing strategy. (In an upward trending futures market, the beginning of the Reaction swing strategy is the highest closing price before the correction.) The count will continue in reverse to the highest closing price of the previous Reaction swing strategy. The forward count begins on the first day to the right of the price bar with the lowest close at the end of the Reaction swing strategy and counts forward the same number as the reverse count as shown in Figure # 2.5.

upward trending market
Figure # 2.5 – Reverse/Forward count in an upward trending futures market.

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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.

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