In the July 23, 2010 issue of the TMV Swing Trading Report, I made a recommendation to buy Coffee at 162.05. (See the July 23 post in this blog) The buy signal was triggered following the completion of a five-wave continuation pattern and ended on the July 21…a projected reversal date.
The buy signal was triggered on July 23, as the market surged to a high of 167.60, before drifting lower over the next two trading sessions. During the two trading sessions, Coffee pulled back to test the 20- day EMA support and form a bullish reaction swing. This is where I became very excited. A bullish reaction swing following a 5-wave continuation pattern, can be very bullish. Therefore, I suggested raising the target objective from 168.75 to 175.75. Two days later, Coffee traded to a high of 178.75…closing the long position at 175.75 for a 1,370 gain!
The pattern sequence and price action I used to identify this trade signal are described in detail in “Unlocking Wealth, Secret to Market Timing”. You can get more information at www.tradersnetwork.com . I would also recommend you sign up for a free 30-day trial subscription the Traders Market Views Swing Trading Report.
By John Crane
