Advanced Swing Trading

John Crane has been an active trader for decades, and is a founding owner of Traders Network–a firm providing both brokerage services and educational training products for today’s intelligent investor. Articles on his trading concepts have been published in Consensus, Barron's, Technical Analysis of Stocks and Commodities as well as The Wall Street Journal, Investor's Business Daily, and Traders World. Having taught numerous seminars on technical analysis, he has also served as director of research and a contributing analyst for the Pacific Research Center. John was recently the president of the National Introducing Brokers Association, and was listed in the Cambridge Registry and Who's Who in American Business. In addition, he is a developer of the Trade Simulator Pro and author of A Traders Handbook: The Reversal Day Phenomenum.

• Preface xiiiIntroduction xvCHAPTER 1 Order from Chaos 1A 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? 9The 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 23Using the Reaction swing to identify short-term trading signals. Rules for entry. Target projections based on time and price.CHAPTER 4 The Reaction Cycle 45Market 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 57Projecting target prices using Action/Reaction lines.CHAPTER 6 The Price Is Right 73Where 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 85Reversal 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 101Price patterns exhibit specific characteristics. How these patterns foretell future market action.CHAPTER 9 Time, Price, and Pattern Working Together 131Combining time and price projections with price patterns to confirm entry and exit signals.CHAPTER 10 When the Patterns Do Not Match Exactly 137Nothing works 100 percent of the time. What to do when the patterns do not match exactly.CHAPTER 11 Bullish and Bearish Divergence 147Another technical indicator used to identify trend exhaustion.CHAPTER 12 When You Can’t Find the Cycle 155An 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 171Long-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? 179Price can exceed time when unexpected events surprise the market. How the Action/Reaction lines establish predetermined exit targets.CHAPTER 15 Stocks 187Applying the Reaction swing methodology to individual stocks.CHAPTER 16 Knowledge Is Power 193The best investment that you can make is investment in yourself. The market knowledge that will give you the edge.CHAPTER 17 Some Final Words 197Words of wisdom.Resources for Traders 201APPENDIX: Charting Basics 205What you should know about bar charts.Index 213

“Crane’s publication adds to the relatively limited amount of literature on a valuable subject.” (The Technical Analyst, May 2004)