Consecutive Closes Trade Model
Consecutive Closes -
The Consecutive Closes model suggests that the market will go 3 to 4+ consecutive close in a row before there is an an opposite close, or reversal in the trend.
The model does not mean the current trend is over; it suggest a setback is anticipated.
Current Bar -
The current bar is counted into the Consecutive Closes model.
Meaning, if there were 3 green bars up with up closes. and the current bar is also above it's opener, this would count as bar 4.
But, if the current bar closes below it's opening, then the past view would have been 3 consecutive closes up, then the reversal bar.
How to trade Consecutive Closes?
This model is also known as Ops Up / Ops Down, but once you get to 3 to 4 plus bars, you can expect some type of set back. Keep in mind this does not mean the move is over, just a set back.
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