On April 5th, July Soybeans posted a low close of $945 1/4 inside the 60% buy window. Two days later, Soybeans rallied out of the buy window and traded through the trigger price for a long entry signal. The reverse/forward count projected a new upward price swing of twelve days from the low close from April 5th. I also used the count to project a target objective at the down-sloping reaction (red) line. After the buy signal was triggered, July Soybeans rallied over 60 cents into the April 21st reversal date and touched the down sloping reaction line – at $10.17 – on the following (trail) day. Soybeans reversed at the reaction line and are currently trading sharply lower. By understanding how to use the “action-reaction” price behavior I could have identified the target objectives two weeks in advance. To learn more about this trading technique read “Unlocking Wealth, Secret to Market Timing”.
