Another classic trade I do on futures is when the market shifts from a cycle into a prospect momentum condition... I call that a coil break that normally becomes an "Icon -Flip" type formation...
Looking today with the new second alternative graphic context and it shows quite clear this formations...
The coil gets formed with multiple crosses of the green to the magenta line, we mark horizontal lines on the extreme of this cycle, creating the coil :
When that coil gets breaked with strenght, wich means not just a little break, but a strong nice break we may consider the cycle condition is in jeopardy, calling for a prospect momentum condition...
after that you have our classic Icon and Flip formations... with a pullback that doesnt go any higher (inside the coil) than 1 third the inner range of the coil.. the ideal its outside the coil...
so here some real live examples from today :
Thats a nice way to trade icons right on the non-momentum to momentum condition shift... take it easy... cheers Walter.