The model is to fade the move, but keep in mind the triple tops and bottoms can bust through and keep going.
There are few what we call V-Tops /V-Bottoms. Meaning, that the market makes a move, creates a swing high/low and then cycles the other way without a retest of the high or low. V patterns do happen, but what we are looking for is the more common double bottom/top pattern and know what to do when you see this pattern.
I discovered this on my own, but also watching many clients try to fade the first top or bottom and not do well. I suggested maybe you wait for the 2nd attempt and see if that can work better. And so the Double Top/Bottom Fade Model was born for Alpha Hunters.
When the 2nd attempt starts, there are number of other models to consider. -
Past performance is not necessarily indicative of future results.
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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.