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In "trading with the trend" and keeping your risk manageable it is often
desirable to buy weakness (sell strength) in a lower time frame (120min,
240min etc) as long as a higher timeframe (daily for example) remains
bullish (bearish). Risk can be reduced further by scaling into a position
or by trading ahead of higher timeframe support (resistance).
----- Original Message -----
From: "ira" <mr.ira@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, February 16, 2003 4:11 PM
Subject: Re: [RT] Countertrend trading (was: ESH3)
> Your contra trend trade is someone else's trend trade. So if you know
what
> you are doing you are always trading with the trend.
> ----- Original Message -----
> From: <phil@xxxxxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Sunday, February 16, 2003 1:30 PM
> Subject: Re: [RT] Countertrend trading (was: ESH3)
>
>
> I agree %100. I think the reason contra trend trading has somewhat of
> a bad name is because
> a) most people who try it don't realize it's not enought to have S&R
> levels; you have to know HOW to trade S&R.
> b) they don't stick to a set of rules, and
> 3) people don't stick to a specific set of S&R rules. Some people end
> up having so many lines on their screen they can hardly see the bars!
>
> Phil
>
> www.sp-levels.com
>
> --- In realtraders@xxxxxxxxxxxxxxx, "ira" <mr.ira@xxxx> wrote:
> > 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
> > ----- Original Message -----
> > From: MikeSuesserott@xxxx
> > To: realtraders@xxxxxxxxxxxxxxx
> > Sent: Friday, February 14, 2003 6:26 AM
> > Subject: [RT] Countertrend trading (was: ESH3)
> >
> >
> > Hi Ira,
> >
> > 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.
> >
> > 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.
> >
> > Regards,
> >
> > Michael Suesserott
> >
> > -----Ursprüngliche Nachricht-----
> > Von: ira [mailto:mr.ira@x...]
> > Gesendet: Friday, February 14, 2003 06:34
> > An: realtraders@xxxxxxxxxxxxxxx
> > Betreff: 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?
> >
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> >
> >
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> >
> >
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