Showing posts with label Trending Versus Counter Trending. Show all posts
Showing posts with label Trending Versus Counter Trending. Show all posts

Friday, May 13, 2011

Trending Versus Counter Trending

We believe a trader is better off recognizing the environment she is in by seeing the overall pattern of highs and lows and gauging the momentum before making the decision to go with a trending strategy in which once she is in the trade, she may use a lagging indicator and plan to allow the trend to develop. Or a trader can decide to employ a counter trend strategy in which he uses support and resistance, individual candle behavior, and/or a leading indicator to get in and out of trades faster.