In the last issue of the TMV Swing Trading Report I said, “The market has traded higher over the past 10 days. However, looking inside of today’s price bar I see a potential peg-leg failure that should trigger a two or three-day decline. This could prove to be a nice swing trade opportunity. Sell Silver at 30.04 stop with a stop loss at 30.37.”
The daily chart was showing a strong upward trending market that had reached the ascending median line resistance. When I looked inside the daily bar -(30-minute chart) I could seen a bearish peg-leg pattern. This pattern alerted me to a short-term swing trade opportunity. The sell signal was confirmed overnight, at 30.04, and the market quickly plunged to the initial target objective, identified by the previous support level at 29.71.
Silver reached the target objective early Thursday morning and formed a bullish peg-leg pattern, turning the market higher. This chart is a great example of the reversal signals that can be generated by this powerful signal pattern. For swing trading recommendations of this type go to www.tradersnetwork.com and sign up for your free 30-day trial subscription to the TMV Swing Trading report.Aqua Run 56