from "The Way of the Turtle", Curtis Faith...
"...over the short term there is generally more movement against a trade taken at a breakout than there is in the direction of the breakout. This is one of the reasons trading breakouts can be very difficult psychologically. It is also one of the reasons you can make money using a countertrend trading style by betting on the breakout not holding and in favor of a bounce off of support or resistance. There is a positive edge for these strategies in the very short term."
That has stuck with me since I initially read it, almost 2 years ago.
After coming to Forex, intent on being a very short time frame trader, I've leaned toward countertrend methods.
If one of the easier styles, generally accepted, is longer time frames trading with the trend, then perhaps if you must trade short term, countertrend is the way.
I've been working toward what I want in a trading method throughout this journal. (Higher win%, short time frames)
Aside from my revenge blow-up trades distorting the account value, I have had some success.
Let's take a look at my mechanical entry as of late.
"...over the short term there is generally more movement against a trade taken at a breakout than there is in the direction of the breakout. This is one of the reasons trading breakouts can be very difficult psychologically. It is also one of the reasons you can make money using a countertrend trading style by betting on the breakout not holding and in favor of a bounce off of support or resistance. There is a positive edge for these strategies in the very short term."
That has stuck with me since I initially read it, almost 2 years ago.
After coming to Forex, intent on being a very short time frame trader, I've leaned toward countertrend methods.
If one of the easier styles, generally accepted, is longer time frames trading with the trend, then perhaps if you must trade short term, countertrend is the way.
I've been working toward what I want in a trading method throughout this journal. (Higher win%, short time frames)
Aside from my revenge blow-up trades distorting the account value, I have had some success.
Let's take a look at my mechanical entry as of late.