In Unlocking Wealth (278 pages), John Crane, a veteran trader and co-founder of Traders Network, discusses his work with the Action/Reaction trading theory, and illustrates a whole new way of using time, price, and patterns to predict, identify, and trade future market swings.
Unlocking Wealth; now sits in my trading library alongside the truly great trading books ever published.
The method is so powerful that I have now made Crane's
approach my main strategy and use a different methodology as a prefilter.
Trading Book Review: Unlocking Wealth: Secret to Market Timing by John Crane
Just in case anyone missed it, I posted a long article on Friday.
The article has 10 charts, including the latest Commitment of Traders results, that illustrate my current Emini medium term forecast.
This weekend I would like to do something different and review the latest book by John Crane Unlocking Wealth: Secret to Market Timing.
This is the follow up to John Crane's
first book, Advanced Swing Trading.
I thought the first book was great but this one is even better.
Unlike other traders come authors, John Crane
does not switch tack with this book and discuss some new and different ways of analyzing the market.
sticks to his
original theories, expands on the methodology and does a much better job of explaining and illustrating it.
The only thing I did not like was the title-too get rich quick for me.
market timing approach is one of the most elegant futures trading methodologies I have seen.
It focuses on market structure and using impulse and reaction swings to identify entry and exit points.
The chart above illustrates a basic component of the methodology.
The Reaction Swing (C D) is a counter trend move that is used to confirm the new down trend and then identify a low risk entry point.
Not revolutionary, but then John Crane
uses the count back to swing point A to forecast the turning point E. Now that is new!
So the Reaction Swing gives you a trend continuation entry point.
The count back gives you a projected exit time.
then goes on to show how the exit can be further refined with price projections.
Lastly, a methodology for identifying and entering at trend reversal is discussed.
However, instead of creating charting software, John Crane
has decided to provide a web-based, end-of-day signal service (Reversal Tracker) for the futures, equities and FX markets.