Notices

Fade

From Traderpedia

Definition:
To trade in the opposite direction of a dominant price move or sentiment.


If a trader believes that a move is unlikely to hold then they will take a trade in the oposite direction to the move in the expectation that the move will reverse. A typical example would be fading a breakout, where the trader would take a trade in the oposite direction to the breakout believeing that a range bound market will continue.