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Counter Trend Trading For Profits
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Ideal trading situation ENTRY ,[object Object],[object Object],[object Object],Price Action
Natural pullbacks in price action Ideal trading situation ENTRY ,[object Object],[object Object],[object Object],Price Action 4 4 4 4 4 4
Natural pullbacks in price action Higher highs and higher lows provide evidence of uptrend ,[object Object],[object Object],ENTRY Price Action 4 4 4 4 4 4 B A C Flags Parallel 1 2 3
1 2 3 Setup ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],200 MA 20 MA B A C Flag Trading against the major trend
2. Bullish Rally 3. Sideways Topping Action 1. Sideways Bottoming Action 4. Bearish Rally 1. Sideways Bottoming Action Focus on Speed of uptrend Long Setups Focus on Speed of downtrend Short Setups
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Use Fib levels, sideways consolidation and Breakouts for  BUY signals Use Fib levels, sideways consolidation and Breakdowns for SHORT signals Trading with the trending price action. 1 2 3 1 3 2
2. Bullish Rally 3. Sideways Topping Action 1. Sideways Bottoming Action 4. Bearish Rally 1. Sideways Bottoming Action 1 2 3 1 3 2
REWARD REWARD RISK RISK STOP ENTRY TARGET TARGET ENTRY STOP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Price Action (1R) (1R) ( multiple  R) ( multiple  R)
2. Bullish Rally 3. Sideways Topping Action 1. Sideways Bottoming Action 4. Bearish Rally 1. Sideways Bottoming Action Chart pattern confirms buy signal Chart pattern  confirms sell signal
2. Bullish Rally 3. Sideways Topping Action 1. Sideways Bottoming Action 4. Bearish Rally 1. Sideways Bottoming Action Aggressive Short Aggressive Buy
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
2. Bullish Rally 3. Sideways Topping Action 1. Sideways Bottoming Action 4. Bearish Rally 1. Sideways Bottoming Action Chasing Short entry  Chasing Long entry
End of counter trend End of counter trend  (1R) (1R)
Reduce targets  Tighten stops  Reduce targets  Tighten stops  (1R) (1R) End of counter trend End of counter trend
Immediate exit Pre-Market Late Day Breakdown High Low Yesterday Today Gap Gap Fill

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Counter Trend Trading

  • 1.
  • 2. Counter Trend Trading For Profits
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. 2. Bullish Rally 3. Sideways Topping Action 1. Sideways Bottoming Action 4. Bearish Rally 1. Sideways Bottoming Action Focus on Speed of uptrend Long Setups Focus on Speed of downtrend Short Setups
  • 10.
  • 11.
  • 12.
  • 13. Use Fib levels, sideways consolidation and Breakouts for BUY signals Use Fib levels, sideways consolidation and Breakdowns for SHORT signals Trading with the trending price action. 1 2 3 1 3 2
  • 14. 2. Bullish Rally 3. Sideways Topping Action 1. Sideways Bottoming Action 4. Bearish Rally 1. Sideways Bottoming Action 1 2 3 1 3 2
  • 15.
  • 16. 2. Bullish Rally 3. Sideways Topping Action 1. Sideways Bottoming Action 4. Bearish Rally 1. Sideways Bottoming Action Chart pattern confirms buy signal Chart pattern confirms sell signal
  • 17. 2. Bullish Rally 3. Sideways Topping Action 1. Sideways Bottoming Action 4. Bearish Rally 1. Sideways Bottoming Action Aggressive Short Aggressive Buy
  • 18.
  • 19.
  • 20. 2. Bullish Rally 3. Sideways Topping Action 1. Sideways Bottoming Action 4. Bearish Rally 1. Sideways Bottoming Action Chasing Short entry Chasing Long entry
  • 21. End of counter trend End of counter trend (1R) (1R)
  • 22. Reduce targets Tighten stops Reduce targets Tighten stops (1R) (1R) End of counter trend End of counter trend
  • 23. Immediate exit Pre-Market Late Day Breakdown High Low Yesterday Today Gap Gap Fill