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A contra trend trade is based upon a signal, not
upon an assumption. You are basing the trade upon some system that says it
is going lower. You are not buying on weakness which means it is going
lower or selling on strength because you believe it should go lower. Most
contra trend trades are established when a trend trade has reached a target that
should act as resistance for the current move. Whether that target is a
measured move, a Fib. number, a support or resistance level, that has proven its
worth in the past. Guessing, trading upon a gut feeling, trading on news,
chasing a trade and many other no nos are used every day and cost people a lot
of money. Ira
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
<A title=MikeSuesserott@xxxxxxxxxxx
href="">MikeSuesserott@xxxxxxxxxxx
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Friday, February 14, 2003 6:26
AM
Subject: [RT] Countertrend trading (was:
ESH3)
<SPAN
class=601390314-14022003>Hi Ira,
<SPAN
class=601390314-14022003>
<SPAN
class=601390314-14022003>I certainly appreciate your point, but a point
can also be made for occasional countertrend trading, if done with
correct stops. For instance, most Wolfe Waves start out counter to the
prevailing trend. If you remember the wave that I posted here a few days
ago - though it did not quite make it to the target line because of the Al
Jazeera video tape news, still the pattern if entered around the #5 point made
some good money on a small risk.
<SPAN
class=601390314-14022003>
<SPAN
class=601390314-14022003>One way to handle counter trend trades is by
looking for trend confirmation on a smaller time frame. Like when entering a
counter trend pattern on a 30 min. chart, one might wait for the new direction
to prove itself as a trend on a 5 min. chart.
<SPAN
class=601390314-14022003>
<SPAN
class=601390314-14022003>Regards,
<SPAN
class=601390314-14022003>
<SPAN
class=601390314-14022003>Michael Suesserott
<SPAN
class=601390314-14022003>
<BLOCKQUOTE
>
<FONT face=Tahoma
size=2>-----Ursprüngliche Nachricht-----Von: ira
[mailto:mr.ira@xxxxxxxxxxxxx]Gesendet: Friday, February 14, 2003
06:34An: realtraders@xxxxxxxxxxxxxxxBetreff: Re: [RT]
ESH3
It absolutely boggles my mind why a trader
would buy weakness. If it is falling, let it fall. If you think
it is going to rise, wait for it to prove to you that it is going to do just
that, rise. Then buy. If you are going from Chicago to New
York, would you go by Denver and San Francisco first. Why not just hop
the train as it leaves the station for New York?To
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