Skip to content

Countertrend Trading

I did do this but instead I used a slightly different method called the stop loss buffer. The entry points stay the same regardless of what type of trend the trade is trading with. In an uptrend the reverse happens with price starting in the lower left corner and moving higher towards the top right of the chart. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk. When we enter a trend trade we expect the ride to be a little easier as we are in essence going with the flow, however taking counter trend trades against the current trend is more like trying to walk through a crowd of people coming towards you, the flow is against you.

Oct 20,  · Counter trend is when you would expect price to reach a level in the opposite direction of trend. Could be below the point where the original trend started, or far below. Trend gives you everything to win when trading against, and everything to loose when trading with.

Forex Counter Trend Trading With Price Action

To demonstrate this point, o ne thing that is immediately noticeable from our examples on the AUDJPY chart, is that there is really no correlation between the strength or duration of the move and the amount of the retracement. This is a major challenge when trading against the trend: Lastly, if a trader were using this strategy in a downtrend, the trader wait for the pair to stall in its move to the downside and they would then fade the move by buying the pair.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Take a free trading course with IG Academy. Our interactive online courses help you develop the skills of trading from the ground up. Develop your trading knowledge with our expert-led webinars and in-person seminars on a huge range of topics.

A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account. Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment.

A Counter Trend Trading Strategy. Please enter valid Last Name. Please enter valid email. Phone Number Please fill out this field. Please Select Please select a country. We often see stocks ramp up, then drop down sharply, ramp up, drop down sharply. I love being in the market for as little time as possible. One of the factors of Risk is our exposure time in the market. When I should a strong stock near the top my stop is always at the high and I look for a quick pull back to the moving averages.

This simple strategy works in Bull markets and Bear markets, and allows us to trade both sides of the trend. My counter trend trading strategy provides more opportunities than a single direction strategy. Instead of feeling frustrated that I missed a big mover, I see it as an opportunity to trade the back side reversal. The challenge is finding the reversal and not getting in a stock going the wrong direction too early. Since countertrend trading requires guessing the change in trend, it is naturally more difficult that momentum trading.

Now depending on what time frame you trade you could be counter trend trading without realising it. For example if the daily trend is down, and you are trading the 15 min time frame, and that is in an uptrend you are counter trend trading the daily trend. Trading against the trend is very risky, and should only be undertaken by very experienced traders as you can lose a lot of money very quickly trading this way.

I like counter trend trading myself and often trade this way. Its not something i do every day, but today was a good opportunity to CTT, so i did. We took 6 trades in total, for a profit of 58 pips. It does not sound a lot for 6 trades, but when you are countering, you cant afford to hang around waiting for big pips, you have to take what you are given. The first trade of the day was a Euro short entry at , exit was at for 14 pips.

At the same time we had an EJ short trade which did not really play out as expected so we closed that one for 4 pips profit. The second trade of the day was a Cable short trade. Entry was at , exit was at for 14 pips again. Then we had another Euro short for 4 pips followed by another Cable short at exit at for 12 pips.

What is 'Countertrend Trading'

My counter trend trading strategy provides more opportunities than a single direction strategy. Reversal Trading Strategy In addition to trading momentum stocks to the upside, I’m a big fan of trading . Countertrend trading is a type of swing trading strategy that assumes a current trading trend will reverse and attempts to profit from that reversal. Countertrend trading is generally a medium. Oct 22,  · Counter trend trading Trading Discussion. Soso, Just my opinion, but you should always have more than one trading strategy.