This is a fade pattern and several times can occur at at double tops and bottoms.
We just wrote about this on the link before where we consider fading a double top or bottom, will the indicators create a divergence? We use the Alpha Hunters Green Line Indicator mainly, but you can use any number of other indicators that shows this pattern too.
When you are looking to fade this pattern, there are a number of other models to consider -
Also, consider not going all in and "Go Fish" (better fills) for entry prices. You may consider that if the market was to make a new high or low, would this show a divergence? and if so, then place orders above or below the swings to catch the better fill prices.
These are not long term trades typically, but at first, rather a scalping opportunity with what we feel are higher odds. Trade at your own risk.
Past performance is not necessarily indicative of future results.
Next -> Fade 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.