Counter Trend Trading Technique

Use Technical Analysis to confirm entry of position. Particularly use chart patterns in conjunction with market dynamics and fundamentals. The chart pattern for Met Life shows a double bottom, which creates a price specific price for entry.

Remember a countertrend trade is attempting to pick a top or bottom. Build position in 1/3 increments and adding only after the market shows you profit. No other trade has as much potential to damage a trading account than a countertrend trade. If the trade goes against you exit position and preserve capital for next trade.

back

Enter your search terms Submit search form