Definition of CTM Trade Types

The definition of each Complete Trading Model (CTM) trade type follows.

A buy upside and sell upside trade occurs when a purchase date occurs before the peak price and a sale date occurs on or before the peak price. So both the buy and sell occur on the upside of the price pattern. An upside buy can not occur on the date of the peak because CTM dos not allow a buy and sell on the same date. An upside price pattern with a few down prices has more winning trades than a pattern with many down prices The buy upside and sell upside trade type has the highest proportion of profitable trades of the three trade types.
A buy on the upside and sell on the downside trade occurs when a purchase date occurs on or before the peak price and a sale date occurs after the peak price. A buy occurs on the upside as prices are rising and a sell occurs on the downside as prices are falling. The proportion of profitable buy upside and sell downside trades is usually less than the proportion of winning trades for the buy upside and sell upside trade type.
A buy on the downside and sell on the downside trade occurs when a purchase date is after the peak price and a sale date is after the peak price. So both the buy and sell occur on the downside of the price pattern. A downside price pattern with few rising prices has more losing trade than a downside pattern with more rising prices. Of the three trade types, the buy downside and sell downside trades have the fewest profitable trades.