What does "fade" mean?

Lots of people seem to use the term "fade". It seems to mean something like "disregard" judging by the context. Can someone give a fairly detailed explanation of what this means precisely in terms of the markets?

it means just what you said..."disregard". but maybe more precisely, it means taking a contrarian approach to the action.

if you fade a move, its like saying "bullshit!!!"

so if it means to "fade the retrace", do you disregard the retrace as a legitimate move in the other direction, or do you disregard the retracement as a false move in the other direction and go forth in the original direction

if someone said "fade the retrace", to me it would mean they think the retrace is bullshit and they are going with the original underlying move..

Here's a nice fade...
http://www.enteringtheartzone.com/tr...s/100_0299.jpg

I like it when you get straight to the point Merlin.

To "fade the retrace" means you ignore the current price movement and stick with the original primary trend.

Most professional traders fade breakouts (trade against them) for example (while amateurs chase them), because most breakouts are false.

Hope this helps.

The "fade" system tries to spot when a trend is overbought or oversold, by using several indicators. It is a reversal technique who's goal is to open a long position at the top or a short position at the bottom.

The "fade" system tries spot when a trend is overbought or oversold, by using several indicators. It is a reversal technique where the goal is to open a long position at the top or a short position at the bottom.

I just want to say that I am grateful that I found this post. It seems this term is thrown around as if everyone knows it. I have been trying to find the answer (not very diligently) to this question for a while now. Now I know. Thanks. :-)

When you fade a golf shot you aim to the left and hit to the right (vice versa for left handed players).

Any fade trade is set up to follow the current price direction (up or down) and actually open a trade in the opposite direction. So it is a reversal trade. Examples: Fading an up trend is to go short, Fading a fakeout up is to go short, Fading a breakout down is to go long, and so on.