After a long trend usually double tops end the trend, using following methods helped me trading this market behaviour profitable :
- Exit Rule: I close trades at the first target if there was a day with a huge rally before...
- Setup Rule: It really pays off to not take short trades in the morning when the 50 EMA is not below the 200 EMA, what was however profitable was trading the countertrend DP short setup.
- Exit Rule: Its wise to close the trade when was a close below the 50% line of prior days range
- Setup Rule: After the US market opened there was a wide range bar at 9.38 this canceled the long setup, however there was another valid signal at 11:16 am.
- Exit Rule: The upcoming short signals made me move my stop to breakeven and at the end of the day I exited the trade.
After a long trend usually double tops end the trend, using following methods helped me trading this market behaviour profitable :