One of Dr Alan Andrew’s trading principles ( the Andrew’s Pitchfork is named after him) states that the market should reach the median line 80% of the time. The current chart of March Coffee offers a very good example of this Andrew’s trading principle in action. In the last issue of the TMV Swing Trading Report, the long Coffee recommendation had reached the initial target objective at 224.25, for a 1,205 point gain. The target objective was identified using the 1st down sloping reaction line. In that issue, I said the market could have a short-term pause at the reaction line, but the longer-term target objective was at the intersection of the upper reaction line and the ascending reaction line…currently at 239.00. Well, the pause was indeed short-term…lasting only one day. March Coffee futures exploded on Tuesday and traded to a high of 234.00 where it tested the ascending median line. The market is poised to continue higher as it trades into the December 23rd reversal date.
This chart illustrates the powerful swing trading strategy of combining just one of Dr. Alan Andrew’s trading principles with Action/Reaction reversal dates. You can learn more about Action/Reaction and reversal dates in the bestselling book “Unlocking Wealth, Secret to Market Timing” or by reading more at www.tradersnetwork.com.
