Dual Momentum Auction Reversal – Market Profile Trend Reversal Trade Setups

This Market Profile tutorial explains how one can spot a potential trend reversal for positional trading with greater odds. Dual momentum auction reversal is a potential reversal pattern which develops during the early part of the trend before a major trending move occurs.

One can use Dual momentum reversal as a potential resistance zones for their positional trading with a greater risk reward ratio.

What is Dual Momentum Auction Reversal?

Dual Momentum Auction Reversal is a classical momentum reversal pattern from market profile with two consecutive days of back to back momentum reversal happens at major swing high or at major swing lows with potential trend reversal odds.

Dual Momentum Top

For a Dual Momentum TOP Reversal pattern occurs at major swing high/lows where back to back momentum sellers (two consecutive days) are witnessed where the first 30min is the days top for two consecutive sessions and the reminder of the session price drops.

In case of dual momentum top reversal immediate momentum top level acts like a potential resistance zone and provides a greater risk reward trading opportunity in terms of positional trading.

Dual Momentum Bottom

Dual Momentum Bottom Reversal pattern is a market profile pattern
occurs at major swing high/lows where back to back momentum buyers (two consecutive days) are witnessed where the first 30min is the days low for two consecutive sessions and a reminder of the session price rallies.

In case of dual momentumbottom reversal, immediate momentum bottom level acts like a potential support zone and provides a greater risk reward trading opportunity in terms of positional trading.

Yes Bank Jan Futures with Dual Momentum Top Reversal Pattern

Yesbank Futures Dual Momentum Top Reversal Pattern continuation

Before initiating the trades looking into the surrounding factor helps a lot to understand the market environment much better. In the Yesbank case before the dual momentum auction reversal there is a earning season announcement with 15% price spike up where price when long to too long and momentum traders are chasing the later part of the earning announcement day. And the very next day price tops out followed by a dual momentum auction reversal pattern.

YesBank Charts as on 1st FEB 2019