The Markets more than often re-test the recent highs or lows.
The markets also make what is known as V-Bottoms and V-Tops, but the double top / bottom seems in our experience happen more often.
The Double Top/Bottom Model setup is when the market first makes a single top or bottom and comes off this price level. Soon the market will begin the move back to generate the Double Top/Bottom structure.
The Momentum model is to trade in the direction of the last top or bottom, expecting it to make a move to set up and form a Double Top/Bottom design configuration.
Here are how many professional day traders are in the world trade. We also call this formation running stops. Meaning, now that a swing high/low is in place, that is the target to take 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.