Countertrend Trading

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Dictionary Says

Definition of 'Countertrend Trading'

A type of swing-trading strategy that assumes a current trading trend will reverse and attempts to profit from that reversal. Countertrend trading is a medium-term strategy in which positions are held between several days and several weeks. Countertrend traders rely on graphs (such as the Bollinger band), indicators (such as the Aroon indicator) and oscillators (such as the relative strength index or Chande momentum oscillator) to make their decisions.
Investopedia Says

Investopedia explains 'Countertrend Trading'

Countertrend trading can be used as part of a diversification and risk-reduction strategy. To limit losses in the event that a trend does not reverse, traders should consider using strategies such as stops and time-based exits. Countertrend trading is one of the most common tools used by contrarian investors.
Search results for

'Countertrend Trading'

  • Combining Trend-Following and Countertrend Indicators

    http://www.investopedia.com/articles/trading/10/trend-following-countertrend.asp
    ... only way to do this in the financial markets is to attempt to "buy the bottom" and
    "sell the top", which by definition is a countertrend approach to trading. ...

  • Trading Systems: Designing Your System - Part 1 | Investopedia

    http://www.investopedia.com/university/tradingsystems/tradingsytems2.asp
    ... There are other types of countertrend trading systems, but all of them share
    the same fundamental goal - to buy low and sell high. ...

  • Forex: Should You Be Trading Trend Or Range?

    http://www.investopedia.com/articles/forex/05/050505.asp
    ... a countertrend after all, except a trend going the other way?) Range True range
    traders don't care about direction. The underlying assumption of range trading ...

  • Forex Trading Rules: Introduction | Investopedia

    http://www.investopedia.com/university/forex-rules/
    ... here stem from years of observation of price action in this market and provide high
    probability approaches to trading both trend and countertrend setups, but ...

  • Moving Average Envelopes: Refining A Popular Trading Tool

    http://www.investopedia.com/articles/trading/08/moving-average-envelope.asp
    ... incurred by the whipsaw trades, which makes this a useful trading tool for ... Among
    the earliest proponents of this countertrend strategy was Chester Keltner. ...

  • Forex Trading Rules: Introduction | Investopedia

    http://www.investopedia.com/university/forex-rules/default.asp
    ... here stem from years of observation of price action in this market and provide high
    probability approaches to trading both trend and countertrend setups, but ...

  • Top 10 Forex Trading Rules Slideshow | Investopedia

    http://www.investopedia.com/slide-show/top-10-forex-trading-rules
    ... here stem from years of observation of price action in this market and provide high
    probability approaches to trading both trend and countertrend setups, but ...

  • Forex: Finding Your Trading Style

    http://www.investopedia.com/articles/forex/06/TradeToTaste.asp
    Forex: Finding Your Trading Style. April 08 2012 | Filed ... and losses. Read More »;
    Neural Trading: Biological Keys To Profit. Learn about ...

  • Master Futures Trading With Trend-Following Indicators

    http://www.investopedia.com/articles/optioninvestor/10/trend-following-indicators.asp
    ... only consider taking a short trade and would completely eschew trading from the ... also
    avoided the emotional and financial drain of any countertrend losing trades ...

  • Forex: Finding Your Trading Style

    http://www.investopedia.com/articles/forex/06/tradetotaste.asp
    Forex: Finding Your Trading Style. April 08 2012 | Filed ... and losses. Read More »;
    Neural Trading: Biological Keys To Profit. Learn about ...

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