Countertrend Strategy

Countertrend Strategy

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

Notes:

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".

See also: Buck the Trend, Contrarian, Momo Play, Sideways Market, Technical Analysis, Trend, Trend Analysis