Trend trading vs counter trend trading. What type of trader are you?
I would like to discuss these two different type of trading styles. Some of you may be a trend trader while others do well at counter trend trading.
I personally find trend trading alot easier than countertrend trading. But this is a matter of trader preference. I have seen some unbelievably skilled countertrend traders.
Each style requires a different set of rules. Trend trading rules are simpler compared to counter trend trading rules. Buying a pullback or shorting a rally are the basic rules for trend trading. Buying a pullback to the 21 moving average is another example.
I am curious to know what kind of methods traders use in counter trend trading. From my experience this requires a more stricter set of rules. I would like to start with one of my own.
In a downtrend, I like to watch for a shift in market sentiment. A new TICK high is a good clue that I look for. I will then try to enter on a pullback of the TICK... vice versa for an uptrend.
In a downtrend, I like to watch for extreme TRIN readings of above 1.9-2.0. The markets have a tendency to bounce. (works better in the overnight session)
Does anyone else have any rules that they live by? Would love to hear your comments on this. Thanks
Trend trading vs counter trend trading. What type of trader are you?
I would like to discuss these two different type of trading styles. Some of you may be a trend trader while others do well at counter trend trading.
I personally find trend trading alot easier than countertrend trading. But this is a matter of trader preference. I have seen some unbelievably skilled countertrend traders.
Each style requires a different set of rules. Trend trading rules are simpler compared to counter trend trading rules. Buying a pullback or shorting a rally are the basic rules for trend trading. Buying a pullback to the 21 moving average is another example.
I am curious to know what kind of methods traders use in counter trend trading. From my experience this requires a more stricter set of rules. I would like to start with one of my own.
Does anyone else have any rules that they live by? Would love to hear your comments on this. Thanks