TOTW Is it better to trade with or against the trend?

tomorton

Legendary member
8,199 1,253
I think the answer depends on your trade time horizon but mine is at least 3 days, so I won't take a stand against the tide for that long.
 

ForexLion

Member
54 3
Trading is more of an art rather than science. If you determine the trend direction, it is always better to trade in the direction of the trend rather than against it. However, in a long or upwards trends, trade the pull back while in downtrends trade the rallies down. This style is a way to minimize risk and possibly maximize rewards. A third way to trade is to stand aside if the market shows sideways movement so that you will not get whipsawed.
 

hyperscalper

Member
89 10
When you get right down to it, there are just two ways to trade: with the trend or against it. For this week's TOTW,we pose the question, which is better?!

Is it better to trade with or against the trend?

I specialize in Micro Scalping. Each micro-entry must be done on Counter-Trend, and on Micro-Pullbacks we add defensively to lower our cost basis, and get the desired lot size in our position (as price moves against us), BUT THEN...

...unless we have good Analytic information that the price will Pivot and the True Major Trend will be in the direction of our position, then we would be dead... and have difficulty surviving the position without a stop out.

No matter how skilled you may be at defensive "cost basis averaging", you can't fight a true relentlessly opposite trend to your position direction :(

HyperScalper
 

NVP

Legendary member
37,622 2,032
When you get right down to it, there are just two ways to trade: with the trend or against it. For this week's TOTW,we pose the question, which is better?!

Is it better to trade with or against the trend?

Last week's TOTW: What's the best trade you ever made?

as everyone else says ..........one mans trend trade is another mans trade against the trend

all depends on TF perspective ;)

true trading against the trend is incredibly difficult .....that's basically punting on decreasing / negative momentum ............right on the knife fall ................ouch !

N
 

BSD

Veteren member
3,819 985
Both, actually.

Meaning identify the overall trend on a higher time frame, and then buy the countertrend dips and sell the countertrend rallies on a lower time frame.

Trading is simple.

That's all it's about.

Everything else is irrelevant waffle to the point of net profitable trading.

That's not to say it's easy, but simple it is.
 
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neil

Legendary member
5,167 747
Both, actually.

Meaning identify the overall trend on a higher time frame, and then buy the countertrend dips and sell the countertrend rallies on a lower time frame.

Trading is simple.

That's all it's about.

Everything else is irrelevant waffle to the point of net profitable trading.

That's not to say it's easy, but simple it is.

I wish I'd said that.
(Oscar Wilde)
 
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counter_violent

Legendary member
11,029 2,921
Both, actually.

Meaning identify the overall trend on a higher time frame, and then buy the countertrend dips and sell the countertrend rallies on a lower time frame.

Trading is simple.

That's all it's about.

Everything else is irrelevant waffle to the point of net profitable trading.

That's not to say it's easy, but simple it is.

Makes you laff doesn't it :LOL:
They're all on here spouting the usual bollux....trade with the trend !!

Ask them to define trend....that might be a good starting point...should at least start to make them think !
 
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hyperscalper

Member
89 10
Makes you laff doesn't it :LOL:
Their are all on here spouting the usual bollux....trade with the trend !!

Ask them to define trend....that might be a good starting point...should at least start to make them think !

Yes, ******** it is... without precisely understanding what traders need to do. (Edit: I didn't know it would blank out the word... Let's use your spelling of Bollix)

What they MUST do is Buy lower than they Sell, whether Long or Short; so they want their post-Entry price movement to make them profitable. Problem is they are predicting a future outcome, largely based upon what they observe in the past, or some patterns thereof.

Definition: The Trend is an expectation based upon where price has moved in the past, and every trader on the planet with a price feed sees that. (I work in Forex). Traders Hope that this established past price movement will continue, invoking the concept of Momentum so prices are like bowling balls.

I'm an active Micro Scalper but, due to the fractal nature of markets, the same price patterns exist at the Micro level as exist on the Macro level and the same problem of "predicting the future outcome" continues to apply.

My advice is to have Indicators which reliably tell you what will happen in the Future. Now that's a tall order !! But what I do know is that one good approach is to Enter on Pullbacks which, for me is the idea that we do not take the Price which the Market is offering us, but take the higher probability retracement friendly prices which occur on "deflection" of the market.

Here's my Mantra: "The price which is currently being offered by the Market is a bad price for BOTH Buyers and Sellers." So "catch price on a deflection" countertrend pullback to enter based upon what you believe the True future price movement will be !!

Do I need a Crystal Ball? Ha ha, but seriously trading is predicting the future, and enduring "price wiggle" which is all engineered by Market Makers to thoroughly confuse traders.

HyperScalper
 
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tar

Legendary member
10,443 1,313
Examples for a trend :

Dow and SP500 UP .

Euro Down .

USDJPY UP .

Oil Down .

...etc

Whats so hard about that ? That being said as a daytrader i trade both directions .
 

Forexmospherian

Legendary member
39,928 3,301
Yes - I like to trade with the Trend............

My definition of a trend is in FX -

Any price move that move more than 3 pips - whether upwards via high prices - or downwards by lower price.

Do I chase every 3 + pip move - NO

I prefer to chase 7 -25/ 30 pip moves - SSS ( sweet spot scalping ) moves that all happen within ideally 12 mins to 30 mins.

That means there are a lot to chase - but I cherry pick my trades using loads of "edges" I have picked up over taking now approximately 16000 live trades - ie trades involving real money during the time I have been involved is solely currency trading.

So normally within 10 -20 trades a day - even if I have 2 or even 5 losses in a day - i will make over my 50 pip daily target.

Don't you just love the "trend" - .......................... well - I love my trends ;-)


Regards

Good Trading


F

 
 
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