What is different than a Double Top/Bottom is that that in our opinion, prices are accepted now rather than rejected the 3rd time prices reach these levels up or down.
It is also the same idea of breaking a swing high or low model, running stops, etc. You will find that we will enter the market before the market price reaches these swings highs or lows in anticipation of the price action being taken out and a continued move in that direction.
The protective stop if long could be Ops Down on a 15 to 30 minute time frame chart for example. Or you could use a point stop ($ Dollar Stop). It would be difficult to use a short term previous bar's low as the stop because many times, you may see the market break out the triple top, then fall back, then advance, But, not all the time, just we have seen this happen.
This also gives you that moment to enter after you see the 3rd move up or down and enter on the pull back for example.
Past performance is not necessarily indicative of future results.
Next -> Momentum Models
Futures, Options on Futures and Forex trading involves a substantial degree of risk of loss and is not suitable for all individuals. An investor could lose the entire investment or, in some cases, more than the initial investment. Past performance is not necessarily indicative of future results.