7. Double Top / Double Bottom


 

The Markets more than often re-test the recent highs or lows. They do also make what is known as V-Bottoms and Tops, but the double top / bottom seems in our experience happen more often.

The setup is when the market makes a single top or bottom. Now the market will begin the move back to generate the double top or bottom formation.

The Momentum model is to trade in the direction of last top or bottom expecting it to make the move to setup and create a Double Top or Bottom pattern formation. 

This is how most day traders in the world trade. It is also called running stops. 


Past performance is not necessarily indicative of future results.




Next -> Momentum Models   

8. Ops Up / Ops Down "Open Pivot"



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.