Tag Archives: Action/Reaction

Swing Trading Strategies – Predicting the low in the Dow Jones by John Crane. [chart]

The Dow Jones futures continue to rally off the May 25th reversal swing date after closing lower on Wednesday. After making a corrective rebound into the 60% sell window on May 13th, the market turned lower and resumed the downward trend. The May 13th high was the final pivot of a bearish TC pattern (trend continuation)… read more

Swing Trading Strategies intra-day using “action-reaction” by John Crane. [chart]

Most of my posts are about swing trading strategies using daily charts. Therefore, I am often asked if the “action-reaction” method can also be used when daytrading. Yes, it can. This 3-minute chart, of the June Eurocurrency, offers a great example of “action-reaction” at work intra-day. Between 7:48 a.m. and 7:54 a.m. (MST) on the… read more

Swing Trading Strategy – Price action suggests Coffee may have bottomed and ready to rally. [chart]

July Coffee traded to a low of 130.60 before reversing and rebounding sharply off the lower parallel line. This price action suggests the market may be in a trend shift and ready to rally off the recent pivot low. Coffee rallied over 100 points off the low, leaving good separation for the low. This is an… read more

Swing trade strategy – Euro rally stalled at median line. What’s next for the euro? [chart]

The June eurocurrency bottomed at 1.2163, a confluence of support where the down-sloping line parallel line intersected with the up-sloping reaction line. The market reversed on the May 18 reversal date and rallied over 450 points in the following three sessions. The three-day rally stalled at 1.2674, when it tested the newly established up-sloping median line on Friday, May 21, 2010 and… read more

Swing trading signals – How will the Soybeans react after reaching target objective on predicted reversal swing date? [chart]

Twenty days after posting a high near the April 21st reversal date, July Soybeans reached the up-sloping reaction target line. The daily low of $9.31 tested the reaction line before finding support and rebounding to unchanged. This completes the five-wave cycle as the Soybeans reach the target objective–projected two weeks in advance–on the projected reversal date. While the… read more

Swing trading strategies – What does “action-reaction” tell us about the next move in the Eurocurrency? [chart]

The  June Eurocurrency posted pivot highs of the April 15 and May 3rd reversal swing dates. Both dates marked the end of the corrective bounce and triggered a bearish reversal, followed by a lower market. The euro also posted a 570 point rally, during the two session following the May 6th reversal date. Since then,… read more

Swing trade strategy – How the R-swing date worked in the Australian dollar. [chart]

June Australian dollar – The Aussie is experiencing a sharp price decline, falling over 580 points in the past four trading sessions. However, the price decline may be coming to an end as the market reached the reaction line target objective (8331) on the projected reversal swing date (May 19th). I look for the Aussie… read more

Swing trading strategies – Euro reaches target line on projected R-swing date. [chart]

June Eurocurrency – After plunging over 220 during Tuesday’s session, the euro opened lower on Wednesday’s reversal date before turning higher and posting a strong rally. The market had tested the reaction line support early in the session and it provided the springboard for the subsequent 200-point rally that was triggered by the reversal date.… read more

Swing trading strategies – Trading in Volatile markets – Part one [video]

During the first week of May,2010, several markets experienced extreme volatility. During extreme volatility, many trading programs and strategies break down because of sudden reversals and lareg price moves. In the two videos titled, ” Trading in Volatile Markets” I walk through several markets using the “Action-Reaction” theory and the Reversal dates to show you how this… read more