REPORT # 1
The valuable trading technique
should help you greatly in your trading, if applied
properly. This "market structure" trend
direction method is basically a pattern recognition
method which is amazingly simple but at the same
time it's powerful.
It's the best way we have found
to identify market direction and define a bullishly
or bearishly structured market. It is based on the
observation that if you look at a bar chart of any
market, you will see a bear market consists of mostly
a series of lower highs and a bull market consists
of mostly a series of higher lows.
These higher-lows and lower-highs
are referred to by Commodity Traders Club as Swing-Lows
and Swing-Highs, also known as Pivots or Pivot-Points.
A swing-low is defined as a low
day (or bar) with higher prices both in front and
behind the low day (or bar), thus forming a swing-low.
This swing-low must also be above the previous swing-low,
thus forming a higher swing-low.
A swing-high is defined as a high
day (or bar) with lower prices both in front and
behind the high day (or bar) forming a swing-high.
This swing-high must also be under the prior swing-high
thus forming a lower swing-high.
The concept of buying higher swing-lows
or selling lower swing highs are being used by the
most successful large traders. This concept has
been used by them for a very long time. These traders
don't talk much about this simple but potentially
profitable technique. Very few traders are familiar
with this powerful, yet simple technique.
Merely buying higher lows and selling
lower highs by themselves can dramatically improve
your trading results. You also need to know where
to place a target so you can get out of the market
once your profit objective is reached. You need
to know where to place a protective stop-loss if
the trade is wrong. For this we strongly recommend
you use "Drawdown Minimizer
Logic®" which is explained in detail
in CTCN Special Report #2.
Drawdown Minimizer Logic is a mathematical method
of sharply reducing drawdown based on past "adverse
A sample chart showing how to use
swing-highs and swing-lows (a.k.a. market structure)
to trade successfully is included in the print version
of this special report.
The concept of only selling short
providing a LOWER "Swing-High" has occurred,
and only buying upon the occurrence of a HIGHER
"Swing-Low" can be very profitable.
This method appears highly profitable
when used on old charts, using some subjectivity
on the past data. Old charts and hindsight combine
to make it look highly profitable. However, doing
it in real-time trading is more difficult.
Selling providing there are 2 or
3 lower days (or bars), instead of just one on each
side of a high point qualifies as a more significant
Swing-High, and can be very profitable. Of course,
the reverse is true for a Swing-Low buy. The more
days (or bars) on each side of the swing day (or
bar) is better to more clearly define the Swing-High
The problem is the fact the more
days (or bars) on each side there are, it's likely
more of the move is over by the time we can get
into the market. Conversely, the fewer days (or
bars) of each side of the pivot bar means the move
has likely not progressed far. However, it's more
likely to be a false or minor Swing-High/Low and
consequently less profitable, or a loser.
It's fairly easy to identify and
draw buy and sell arrows/dots at Swing-High and
Swing-Low points on charts. However, doing it in
real-time trading is not as easy as it appears on
a back-data bar chart.
Nevertheless, the Swing-High and
Swing-Low concepts (a.k.a. Market Structure) are
in our opinion the best trend identification tool
for trading the commodity futures markets successfully.
It will "work" in any market, the actual
market makes little difference. Of course, as always,
trending markets make it work a lot better.
The concept of buying/selling Swing-Lows/Swing-Highs
is simple and can be amazingly successful but needs
to be combined with a good stop-loss method to give
you protection on false signals. It's recommended
you use CTCN's copyrighted "Drawdown
Minimizer Logic®" to scientifically
set stop-loss levels. "D.M.L." is used
by CTCN's Swing Catcher® technical analysis
software system but it's not used by CTCN's Real
Success2 method. However, it may successfully be
used with it. Click here for our free "D.M.L."
Special Report 2. Drawdown
- This profit potential and informative Special
Report is regularly priced at $50.00 (but free to
traders via this CTCN world wide web site). It may
seem like too much money for a few pages of information.
However, you should not judge something by its size
but by its content and value. Swing-Highs &
Swing-Lows are actually worth a great deal of money.
It will help you greatly in your trading.
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