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Counter Trend Strategy
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Old 02-19-2007, 03:03 AM
forex101 forex101 is offline
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Default Counter Trend Strategy

Yes, I am using something similar to that. Basically the deal is that you first look for the price that starts deviating from let's say 20-period moving average. Then you check if the pair is trading near a support/resistance 00 level. As the price breaks a few pips below/above the double digit level you enter into a trade in the opposite direction to the general move. Your logic here is that the price should revert to the moving average and it should bounce off the support/resistance. I usually enter 5-10 pips below/above support/resistance with a stop 20-30 pips away from the entry price.

Hope this helps
Steven
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