Countertrend Trading, Profiting from Prices Extremes
Published at : December 04, 2021
Countertrend trading is exactly what it sounds like, taking a position opposite of the primary trend.
To understand the concept, think of prices as an elastic band: the elastic band can stretch and stretch, but at one point the bands' shape will correct itself and snap back to its normal state. This correction motion is always faster and more extreme than the stretching motion. Countertrend trading is when Traders attempt to profit from an impulse move that has traveled too far or too fast from the dominant trend to try and catch this correction motion. Countertrend trading is inherently riskier than trend trading, though being able to identify these rare opportunities with a timely placed, well-defined risk and realistic profit object, a countertrade can prove to be greatly rewarding.
Join John Rowland, Barchart's Head of Trading Education as he looks at two ways to employ a countertrend set-up. First he will look at a conservative proactive trade that looks at price retests and failures throughout multiple time frames. Second, he will look at the more aggressive reactive approach that looks for candlesticks reversals patterns as well as price deviations. He'll offer a 5-step plan that includes price recognition, confirmation, reversal patterns, proper stop placements, and setting realistic targets.
Inside the webinar, you will learn about
- Moving Average Deviations
- Bollinger and Keltner Bands
- Fibonacci Retracement
- Candlestick reversal patterns
- Multiple Time Frame analysis
#daytrading #tradingtips #tradingmindset
To understand the concept, think of prices as an elastic band: the elastic band can stretch and stretch, but at one point the bands' shape will correct itself and snap back to its normal state. This correction motion is always faster and more extreme than the stretching motion. Countertrend trading is when Traders attempt to profit from an impulse move that has traveled too far or too fast from the dominant trend to try and catch this correction motion. Countertrend trading is inherently riskier than trend trading, though being able to identify these rare opportunities with a timely placed, well-defined risk and realistic profit object, a countertrade can prove to be greatly rewarding.
Join John Rowland, Barchart's Head of Trading Education as he looks at two ways to employ a countertrend set-up. First he will look at a conservative proactive trade that looks at price retests and failures throughout multiple time frames. Second, he will look at the more aggressive reactive approach that looks for candlesticks reversals patterns as well as price deviations. He'll offer a 5-step plan that includes price recognition, confirmation, reversal patterns, proper stop placements, and setting realistic targets.
Inside the webinar, you will learn about
- Moving Average Deviations
- Bollinger and Keltner Bands
- Fibonacci Retracement
- Candlestick reversal patterns
- Multiple Time Frame analysis
#daytrading #tradingtips #tradingmindset
CountertrendTrading,Profiting