Tuesday, 23 June 2015

Short term reaction line swing trades: Long Corn, Soybeans, Wheat.

If you are a student of market geometry incorporating reaction lines and reaction line theory as developed on this site then you will appreciate that if three simultaneous signals are seen on different yet correlated instruments then it begs further investigation. Although i have no view wither way on the directional bias for Corn, Wheat and Soybeans i did see a long opportunity based purely on reaction lines and confirmed entries using the b-line stochastic template. These are a short term swing trades and are taken on the Commodity-Analysis.co.uk real account with P&L available.They are simply used to show the application of Reaction Line theory into profitable trade setups.All Reaction lines shown below are drawn by automatic indicator.. they are sometimes manually highlighted by me or their "mirror" line is drawn manually (overlaid direct onto a automatically drawn RL in a higher or lower TF and then viewed in a different TF)

Below: 2 touches on the blue centre line of an important down sloping PF

Below you will see the upsloping reaction line is not touching the candles as per the daily chart above. It should be first viewed in the daily then overlaid manually to reveal it dual correct locations but for simplicity I have left it-as is.

Here below it is in the correct location in the 240 mkin chart giving our entry more sense when viewed with the green PF
 Beans: Look at previous gently uplsoping reaction lines. Even within the context of a falling market you get a swing upwards

 Wheat dances a jig around the $5 buck level

  on the A to BC mid point ( ie the centre line before the body of the PF) you will see price action around this ML resulting in an inverted head and shoulder -the head protruding beneath the blue CL and forming the penultimate low pivot

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