Countertrend Strategy

A trading strategy where an investor attempts to make small gains through a series of trades against the current trend.


Contrarian investors perform counter-trend trading strategies - purchasing shares when prices are low and selling when they're high. The investor receives smaller gains since the full market swing is not recognized.

Many counter-trend investors use momentum indicators to determine the best times to execute their trades.

Also known as "counter-trend trading".




Getting Confirmation with the Momentum Strategy - Learn how to use a number of different indicators to know when to make your trading moves.

Trading Trend Or Range? - In FX, it's not the price environment that decides this for you. Learn the differences to see which you prefer.

Getting to Know Oscillators - Part 4: Momentum - Learn about measurement of the speed or velocity of price changes.
Related Terms

Buck the Trend

Contrarian

Momo Play

Sideways Market

Technical Analysis

Trend

Trend Analysis

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