Advanced Swing Trading reveals the strategies used by George Soros, Warren Buffett and other high-profile traders to reap whirlwind profits in today's volatile markets. With the demise of day trading, traders are searching for new methods of exploiting the unprecedented volatility of post-9/11 securities markets. The most successful of these methods so far has been swing trading, a powerful technical approach that allows traders to profit from shorter-term price moves, ranging from several days to a couple of months. In Advanced Swing Trading, veteran trader and leading trading coach, John Crane clearly describes his original Action/Reaction swing trading system. With the help of numerous real-world examples, Crane clearly delineates his system and shows readers how to use it to consistently to gain big returns in even the shakiest of markets.
John Crane (Loveland, CO) is the founder of Traders Network, a firm providing brokerage service and educational training products for smart investors. His monthly columns have appeared in Futures Options magazine, and articles about his trading strategies have appeared in Barron's, Consensus, and The Wall Street Journal.
CHAPTER 1 Order from Chaos 1
A discussion of market behavior - how it is affected by human emotions and by economic supply and demand. The Action/Reaction theory of a natural cycle that circulates throughout the market.
CHAPTER 2 What Is a Reaction Swing? 9
The Reaction swing is the central point where the Action ends and the Reaction begins. Rules to identify Reaction swings and to project future turning points in the market.
CHAPTER 3 “Swing Trading” the Reaction Swing 23
Using the Reaction swing to identify short-term trading signals. Rules for entry. Target projections based on time and price.
CHAPTER 4 The Reaction Cycle 45
Market trends will unfold through an identifiable pattern called the Reaction cycle. How to identify each segment of this cycle from beginning to end.
CHAPTER 5 Reaction Lines 57
Projecting target prices using Action/Reaction lines.
CHAPTER 6 The Price Is Right 73
Where and when is the right time to exit a trade? An easy method to determine when the price is right.
CHAPTER 7 Reversal Dates and the Gann Fan 85
Reversal dates are based on a natural cycle that circulates through the market. How natural support and resistance levels can work in conjunction with the Reversal dates.
CHAPTER 8 Market Tells 101
Price patterns exhibit specific characteristics. How these patterns foretell future market action.
CHAPTER 9 Time, Price, and Pattern Working Together 131
Combining time and price projections with price patterns to confirm entry and exit signals.
CHAPTER 10 When the Patterns Do Not Match Exactly 137
Nothing works 100 percent of the time. What to do when the patterns do not match exactly.
CHAPTER 11 Bullish and Bearish Divergence 147
Another technical indicator used to identify trend exhaustion.
CHAPTER 12 When You Can’t Find the Cycle 155
An alternative use of the Reaction swing. A testimony for the versatility of the Reaction swing. Using one Reaction swing to project several future Reversal dates.
CHAPTER 13 Long-Term Trend versus Short-Term Trend 171
Long-term trends are often connected by a specific pattern. How to identify the long-term trends using the A-B-C pattern.
CHAPTER 14 When Is the Price Right? 179
Price can exceed time when unexpected events surprise the market. How the Action/Reaction lines establish predetermined exit targets.
CHAPTER 15 Stocks 187
Applying the Reaction swing methodology to individual stocks.
CHAPTER 16 Knowledge Is Power 193
The best investment that you can make is investment in yourself. The market knowledge that will give you the edge.
CHAPTER 17 Some Final Words 197
Words of wisdom.
Resources for Traders 201
APPENDIX: Charting Basics 205
What you should know about bar charts.