Now that the long November Crude oil swing trade (long from 77.55) has reached the target objective, (83.45) I think it is a good time to review the trade signal and see how “action-reaction ” helped determine the entry, direction, duration and distance (target objective) before the trade was entered.
Crude oil had undergone a corrective pullback that began with a swing high on September 14 and ended with a swing low on September 23. Following the September swing low, Crude traded higher on September 24th where the market paused and gathered energy for the next price swing. Over the next three trading sessions, Crude posted three consecutive lows on the lower parallel line. This turned out to be significant when the Crude used this support line as a launching pad for the next price advance. I used this price action to make my recommendation to buy the Crude oil at 77.55 on September 30. I also used the “action-reaction” to pattern to project a price advance to the ascending median line, currently at 83.45, and also identify the next reversal/reaction date for October 8th, suggesting Crude should reach the target objective (83.45) on or before October 8.
Crude oil had posted five higher highs, is as many trading days, before Wednesday’s EIA Inventory report was released at 9:30 CST. Crude oil quickly shook off the bearish report and continued the six day rally, reaching the 83.45 target objective! This is a very good example of how the “action-reaction” strategy can be combined with my Reversal date indicator to pinpoint the entry price and also help project the time duration and price objective before the trade is entered. This will help the trade determine the risk and potential to see if the signal meets his criteria. For more information about the “action-reaction” swing trading strategy or to get more swing trading signals like the Crude oil, go to www.tradersnetwork.com and sign up for a free trial subscription of the TMV Swing Trading report.
