27. Consecutive Closes

Alpha Hunters have determined that markets don't go straight up or down forever. They all turn, which is what we call Cycles. 

The consecutive close model suggests that the market will go 3 to 4+ consecutive close in a row, and then the next bar could be an opposite close.

The model does not mean the move is over; it is just a setback is anticipated, and you can make money both on a fade and momentum pattern.

There are several trades to consider when we see this model; if the market has moved up 3+ consecutive closes or more, then this model suggests:

  1. To reach (Go Fish) for a  fill price to start the fade. 
  2.  To sell to fade the market, but just expect that there could be a setback coming and to get ready to enter in the direction of the closes using another Alpha Hunters Trade Model, for example. 
  3. Look for an Opposite Close Wiggle
  4.  Entry set up. Meaning if the market was moving up, then we have the first red down close, then the entry would be a buy stop at the open of the red down close bar or the high of that bar. The protective stop would be close or low to the red down bar if filled. 

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.