Countertrend Strategy A trading strategy where an investor attempts to make small gains through a series of trades against the current trend. It is also known as "counter-trend trading". Investopedia Says: Contrarian investors perform counter-trend trading strategies - purchasing shares when prices are low and selling when they're high. The investor receives smaller gains since the full market swing is not recognized.
Many counter-trend investors use momentum indicators to determine the best times to execute their trades. Related Terms: Buck the Trend Contrarian Double Up Momo Play Sideways Market Technical Analysis Trend Trend Analysis |