When to enter Counter Trend position? | Forex Factory

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When to enter Counter Trend position?

  • #1
  • First Post: Dec 19, 2010 3:49am Dec 19, 2010 3:49am
hello , i am doing well trading recently , i trade with trend and i love trading counter trend , when i believe trend (4hr , 15min) is ending , i use EMA as S&R level , but it just gives me a good entry point in the trend direction ,

i dont know when is the best time to enter against trend , so i use minimal lot size and build on it ?

any ideas traders ?
  • #2
  • Dec 19, 2010 5:38am Dec 19, 2010 5:38am
Consider this strategy: The more sideways the price is moving, the more likely the next new candle will at least initially reverse direction. Unless the Daily's in a strong trend, you can look for a shallow or deep reversal at the start of the new Daily candle. Go to the 15-minute chart and use some trend-following technique to enter and exit.

Rob
  • #3
  • Dec 19, 2010 7:07am Dec 19, 2010 7:07am
Quoting seawinde
hello , i am doing well trading recently , i trade with trend and i love trading counter trend , when i believe trend (4hr , 15min) is ending , i use EMA as S&R level , but it just gives me a good entry point in the trend direction ,

i dont know when is the best time to enter against trend , so i use minimal lot size and build on it ?

any ideas traders ?
actually i don't wanna trade against the trend....i'm not a fan of counter trend trading,

so why not increase your lot sizes at trend trades which have a better r:r ?
counter trend trades are for those who can't wait for the next good setup and just want to 'trade'
Hero calls followed by margin calls...
  • #4
  • Dec 20, 2010 8:18am Dec 20, 2010 8:18am
Quoting PhAnTi'
counter trend trades are for those who can't wait for the next good setup and just want to 'trade'
Phatni , thanks for the quoted , i really find that in myself


thanks rob , are to talking about seeking a reversal formation ?
  • #5
  • Dec 20, 2010 8:34am Dec 20, 2010 8:34am
usually I wait for maximum daily average range at least 100% or more and the speed of the recent trend is slowing from trending to ranging.
  • #6
  • Dec 20, 2010 8:35am Dec 20, 2010 8:35am
on a statistically proven HUNCH

  • #7
  • Dec 20, 2010 8:53am Dec 20, 2010 8:53am
Quoting seawinde
hello , i am doing well trading recently , i trade with trend and i love trading counter trend , when i believe trend (4hr , 15min) is ending , i use EMA as S&R level , but it just gives me a good entry point in the trend direction ,

i dont know when is the best time to enter against trend , so i use minimal lot size and build on it ?

any ideas traders ?
The Idea is to anticipate the trend before it starts. If by going counter trend based on your plan you are finding new trend direction... well done, as most join the move when the trend has come to an end.
  • #8
  • Dec 21, 2010 6:23am Dec 21, 2010 6:23am
I think trade against trend is difficult, be prepare that the winning probability is low. I am not confident in trade against trend.
  • #9
  • Dec 21, 2010 7:40am Dec 21, 2010 7:40am
Quoting PhAnTi'
actually i don't wanna trade against the trend....i'm not a fan of counter trend trading,

so why not increase your lot sizes at trend trades which have a better r:r ?
counter trend trades are for those who can't wait for the next good setup and just want to 'trade'
Trends occur on every timeframe. A counter trend on h1 or m30 can be with a valid trend on m5.
  • #10
  • Dec 21, 2010 4:30pm Dec 21, 2010 4:30pm
Quoting seawinde
thanks rob , are to talking about seeking a reversal formation ?
I'm thinking of it as trading a counter-trend on the Daily, using a low time frame for entry and exit. As jag1966 wrote, trends occur on every time frame, so essentially you'd trade a trend on the 15-minute as part of a counter-trend on the Daily.

You could also probably use the 60-minute with the 5- or 3-minute, but then you're running into the problem of the Bid-Ask spread on a low time frame counter-trend.

Rob
  • #11
  • Dec 21, 2010 5:15pm Dec 21, 2010 5:15pm
Quoting jag1966
Trends occur on every timeframe. A counter trend on h1 or m30 can be with a valid trend on m5.
im talkin about the big picture. i always trade the big trend
Hero calls followed by margin calls...
  • #12
  • Dec 22, 2010 1:34am Dec 22, 2010 1:34am
Quoting seawinde
hello , i am doing well trading recently , i trade with trend and i love trading counter trend , when i believe trend (4hr , 15min) is ending , i use EMA as S&R level , but it just gives me a good entry point in the trend direction ,

i dont know when is the best time to enter against trend , so i use minimal lot size and build on it ?

any ideas traders ?
I have spent years and years studying trend reversals, the simplest method is the hl lh, which is a 123 or a 3 tap, they are all the same thing really.

Here is a trade I took this morning. Three candles make a trend.
Attached Image (click to enlarge)
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  • #13
  • Dec 22, 2010 2:04am Dec 22, 2010 2:04am
Quoting PhAnTi'
im talkin about the big picture. i always trade the big trend
Point taken, I tried that and hated suffering drawdown, by trading m30 m5 I can take multiple trades out of the same longer term move. Small stops mean larger position sizes for me.

Trade whatever style suits your own personality is the best advice I think.
  • #14
  • Last Post: Dec 29, 2010 8:07pm Dec 29, 2010 8:07pm
i added MACD and Stoch , will test them as an additive to my main strat ,

they seem to be good in backtesting
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