Counter-Trend Trading Strategy

[McFX]

Hi folks,

Has anyone tried fading the trend as the price reaches a phychologically significant double zero level? (like for example 1.3200 for EUR/USD)
I applied the Counter-Trend trading Strategy on AUD/USD early in the Asian session when there were no major releases that could provide strength for the trend (if there was one). It worked every time. Has anyone been using this strategy or something similar to that?



Your thoughts are appreciated.
McFX

[forodo]

how to use this such bro?

[forex101]

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

[forex-101]

This strategy best works in quite market conditions with no major news releases ahead. However it has some success rate after the news events, since there is always a pullback after initial buying or selling.

Cheers,
Steve

[forex-101]

This strategy is very similiar to fading the double zeros strategy by Kathy Lien in her book: Daytrading in the Forex .... No wonder it's author is also a guy from FXCM. I guess the are frequently using this strategy.

[nicesurf]

Anybody tried this strategy and how is result ?


Nic

[vladv]

Anyone still trading this counter trend setup?