Countertrend Strategy
Definition of 'Countertrend Strategy'A trading strategy where an investor attempts to make small gains through a series of trades against the current trend. It is also known as "counter-trend trading". |
|
Investopedia explains 'Countertrend Strategy'Contrarian investors perform counter-trend trading strategies - purchasing shares when prices are low and selling when they're high. The investor receives smaller gains since the full market swing is not recognized.Many counter-trend investors use momentum indicators to determine the best times to execute their trades. |
Related Definitions
Articles Of Interest
-
Use The Momentum Strategy To Your Advantage
Learn how to use a number of different indicators to know when to make your trading moves. -
Forex: Finding Your Trading Style
Determine your own trading style, and the versatile currency market will accommodate it. -
Forex: Should You Be Trading Trend Or Range?
In FX, it's not the price environment that decides this for you. Learn the differences to see which you prefer. -
Momentum Indicates Stock Price Strength
Momentum can be used with other tools to be an effective buy/sell indicator. -
Market Summary For May 17, 2013
The U.S. stock markets moved sharply higher this week, on track for its fourth straight week of gains, driven by ongoing improvements in economic indicators. -
Parabolic SAR Buy Signals
The Parabolic SAR indicator is flashing "buy" in these four diverse stocks. Not simply relying on one indicator though, I take a look at the overall technical outlook and determine which ones ... -
Sell In May – Yay Or Nay?
Seasonal timing in the market, best personified by the adage, “Sell in May – Go away,” has long been the subject of debate among investors. The question remains: Is there anything to it? -
Market Summary for May 10 2013
Major U.S. indices moved higher this week but, given the new highs, traders should watch for retracements next week. -
Buying The Upward Trend Channel Bounce
Find out how to set up the trades for four stocks that are moving higher within well-defined trend channels. -
Market Summary for May 3 2013
The U.S. stock market extended its rally higher this week, led by technology stocks and lagged by small-cap stocks. Traders should be watching a number of other reports due out next week.
Free Annual Reports