Advanced Counter Trend Trading Techniques

Advanced Counter Trend
Trading Techniques
IntradayMoney.in
www.intradaymoney.in
Major Price Action is trending upward and you are focused on SHORTING
Major Price Action is trending downward and you are focused on going LONG
www.dailyniftytips.in
only
Majorsure
Priceshot
Action
is trading in a sideways consolidation pattern and
tips..!
Your focused on price action trending upward or
Your focused on price action trending downward
Price Action gaps
Up and you are focused on FADING the gap
Down and you are focused on the gap FILLING
Price Action is relatively
IntradayMoney.in
Strong in multiple markets and your focusing on weak price action setups for shorting
Weak in multiple markets and your focusing on strong price action setups for going long
Price
Action
only sure shot tips..!
Ideal trading
situation
IntradayMoney.in
ENTRY
LONG Entry
Up trend
Higher Highs & Higher Lows
Price
Action
Ideal trading
situation
4
4
Natural pullbacks &
IntradayMoney.in
counter trends in price

action
ENTRY
LONG Entry
Up trend
Look for declining

volume on pullbacks
B
4
2
1
Parallel
Price
Action
4
Flags
Natural pullbacks
IntradayMoney.in
in price action
ENTRY
Major Up Trend
Higher highs and higher

lows provide evidence of
uptrend
20 MA
Setup
Signal
2B/3B Candlestick Reversals

Crossingonly
MAs sure shot tips..!
RSI Short/Sell signals
Stochastic Oversold signals
MACD Down trending histogram
Volume decreasing
Divergence
No Upside Follow Thru
B
3
200 MA
2
1
Major Trend
IntradayMoney.in
C
Flag
Trading against the major trend
Higher timeframe uptrend
Focus on Speed of
uptrend
Long Setups
1. Sideways Bottoming Action
3. Sideways Topping Action
Focus on Speed of
downtrend
IntradayMoney.in
Short Setups
Minor support area
IntradayMoney.in
Major support areas
Bullish
Bearish
Engulfing
Engulfing
IntradayMoney.in
50%
Bullish
50%
Piercing
Bearish
Piercing
Countertrend
only sure
shot tips..!
Setup
Countertrend
Setup
3-Bar Bearish Reversal
3-Bar Bullish Reversal

Bull Trap
Bear Trap
Bullish Piercing
Bullish Engulfing
Opening Range Higher Low
IntradayMoney.in
Bearish Piercing
Bearish Engulfing
Opening Range Lower High
Countertrend
Setup
Price
Action
4
4
Ideal trading
situation
4
Trying to trade the

natural pullbacks
IntradayMoney.in
4
ENTRY
LONG Entry
Up trend
Countertrend
Setup
20 MA
Reverse Entry Signals &

Trading Doubt
only sure
shot tips..!
2B/3B Candlestick
Reversals
Crossing MAs
RSI Short/Sell signals
Stochastic Oversold signals
MACD Down trending histogram
Volume decreasing
Divergence
No Upside Follow Thru
B
3
200 MA
Major Trend
IntradayMoney.in
C
Flag
Trading against the major trend
Higher timeframe uptrend
Most traders are NOT aware they are counter trend trading price action until they
are actually in the trade and managing it.

Often, the speed of the uptrend can assist traders with determining the profit
opportunity and odds of success for counter trend trading
Aggressive up trends often have aggressive retracements
Setups, Signals, and Strategies have to be very focused and fast for entry to
maximize potential profit
IntradayMoney.in
Remember counter trends are short in duration
Very dependent on the timeframe for performance
Often traders loose trying to accurately trade the countertrend paradigm
Buying New Lows:

only
sure shot tips..!
Bottom-fishing
to pick the market bottoms and focus on exactly getting in at the low of the
price action downtrend.
Traditional trading suggest waiting for confirmation that support has held and prices are
moving in an uptrend with higher highs and higher lows
Selling New Highs:
of the price action uptrend.
IntradayMoney.in
Traders trying to pick the market tops and focus on exactly getting out or shorting at the high
Traditional trading suggest waiting for confirmation that overhead resistance has held and
prices are moving in a downtrend with lower highs and lower lows
When countertrend trading know:
Support and resistance levels where traders identify entry and exit opportunities when
trading.
only
sure shot tips..!
Fibonacci percentage "retracement" levels where savvy traders use them to improve their
entry and exit points.
How traders often try buying into support
Buying breakouts in an uptrend is often chasing the move; similar to buying new highs or shorting new lows
How traders often try shorting into resistance
IntradayMoney.in
How traders often try buying a breakout
If the major price action trend is in a downtrend, more than likely, it will continue
If the major price action trend is in a up trend, more than likely, it will continue
How traders often try shorting a breakdown
www.dailyniftytips.inTrading with the trending price action.

Use Fib levels, sideways
consolidation and
Breakouts for BUY
signals
3
1
IntradayMoney.in
Use Fib levels, sideways
consolidation and
Breakdowns for SHORT
signals
3. Sideways Topping
Action
2
3
1. Sideways Bottoming
Action
IntradayMoney.in
1
1. Sideways Bottoming
Action
Chart pattern
Chart pattern
confirms sell signal
confirms buy signal
IntradayMoney.in
Aggressive Short
Aggressive Buy
IntradayMoney.in
Chasing The
Markets
Excessive
Losses
Lack of patience and discipline
Tunnel vision in reference to market conditions
Inter-market Analysis
Improper money management or risk management
Over-trading
Too many markets at one time not enough trades setups
Excessive trades trying to recoup losses
Pursuit of Perfection and High expectations of
IntradayMoney.in
Winnings and Profits
Catching The falling Knife
Trying to Pick Tops and/or Bottoms
Not having a trust-worthy trading plan for trading

trends
NO accountability for actions
Like fast-paced, risk-filled environment
Looking for Instant Gratification

only
Trading
from
a mindset
sure
shot
tips..! of greed or
desperation
Overconfidence
Have a very demanding ego that unfortunately

distorts ones rational thinking
Revenge
Mindset
IntradayMoney.in
Emotions empower your actions
Remaining in position to avoid admitting wrong
Relying on Sense of Timing or

Trading Intuition
Competitive
Nature
Chasing Long entry

Chasing Short entry
IntradayMoney.in
End of counter trend
(1R)
IntradayMoney.in
(1R)
(1R)
Reduce targets
Tighten stops
Reduce targets
Tighten stops
IntradayMoney.in
(1R)
Yesterday
Today
High
IntradayMoney.in
Pre-Market
Gap
Late Day
Breakdown
Low
Gap
Fill
Immediate exit
TARGET
End of the Move
Flag Pattern
62%
50%
Beginning of
Move
38%
38%
Current
Down Trend
ENTRY
End of the
Move
50%
IntradayMoney.in
62%
STOP
LEVERAGE
Beginning of Move
REWARD-TO-RISK MODEL
~ 2:1
Price
Action
Beginning
of Move
Daily or Weekly
TARGET
End of the
Move
PHASE IV
38%
Current
Down Trend
ENTRY
End of
the Move
50%
IntradayMoney.in
62%
STOP
Beginning
of Move
Down trend
Lower Highs & Lower Lows
Beginning of Move
STOP
62%
RISK
End of the
Move
Current
Uptrend
ENTRY
50%
38%
38%
IntradayMoney.in
REWARD
50%
62%
TARGET
End of the Move
Beginning of
Move
UP Trend
Price
Action
Daily or Weekly
Decide to use Trailing

Stop
Beginning of
Move
STOP
PHASE II
End of
the Move
RISK
ENTRY
Current
Uptrend
IntradayMoney.in
REWARD
End of Move
TARGET
Beginning
of Move
Up trend

Advanced Counter Trend Trading Techniques

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Advanced Counter Trend Trading Techniques

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Advanced Counter Trend

Your focused on price action trending upward or

Your focused on price action trending downward

Price Action gaps

Up and you are focused on FADING the gap

Down and you are focused on the gap FILLING

Price Action is relatively

Natural pullbacks &

counter trends in price

Look for declining

Higher highs and higher

2B/3B Candlestick Reversals

Trading against the major trend

Higher timeframe uptrend

1. Sideways Bottoming Action

3. Sideways Topping Action

1. Sideways Bottoming Action

Minor support area

3-Bar Bearish Reversal

3-Bar Bullish Reversal

1. Sideways Bottoming Action

Opening Range Lower High

1. Sideways Bottoming Action

Trying to trade the

Reverse Entry Signals &

Trading against the major trend

Higher timeframe uptrend

are actually in the trade and managing it.

Aggressive up trends often have aggressive retracements

Remember counter trends are short in duration

Very dependent on the timeframe for performance

Often traders loose trying to accurately trade the countertrend paradigm

Buying New Lows:

Selling New Highs:

of the price action uptrend.

How traders often try buying into support

How traders often try shorting into resistance

How traders often try buying a breakout

How traders often try shorting a breakdown

www.dailyniftytips.inTrading with the trending price action.

3. Sideways Topping Action

confirms buy signal

1. Sideways Bottoming Action

3. Sideways Topping Action

1. Sideways Bottoming Action

Lack of patience and discipline

Tunnel vision in reference to market conditions

Improper money management or risk management

Too many markets at one time not enough trades setups

Excessive trades trying to recoup losses

Pursuit of Perfection and High expectations of

Catching The falling Knife

Trying to Pick Tops and/or Bottoms

Not having a trust-worthy trading plan for trading

NO accountability for actions

Like fast-paced, risk-filled environment

Looking for Instant Gratification

Have a very demanding ego that unfortunately

Emotions empower your actions

Remaining in position to avoid admitting wrong

Relying on Sense of Timing or

Chasing Long entry

1. Sideways Bottoming Action