14. Break Swing High / Low Momentum

We have learned that markets break swing highs and lows. 

  • The setup is to trade in the direction of these swing highs and lows.  
    • We suggest exiting part or all of your position after the market breaks these swings, especially if it makes a double top or bottom. Then wait and see if the market is going to continue?

Note: As much as we anticipate the market price to break the swings, we are ready if the market does not break the swing to be ready to exit fast because, in our opinion, prices are signifying rejected levels at these swings. Let's face it; their prices already got rejected once there for this formation to exist.  

  • The protective stops can be Ops Up or Ops Down, or if the entry bar is large enough, then the high or low of the entry bar.
  • If the bar is small, it may be challenging, but the double top uses the bar's high or low entry bar as the opposite protective stop out.

Past performance is not necessarily indicative of future results.

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.