fade or follow new highs/lows?

My reply is still the same.

There is no hard fast rule that works all the time, and <u>as a trader</u> you must always be aware of the trend, S/R levels and whatever other indicators you might use, you must then trade accordingly - all the while being prepared to be completely wrong.
Sounds relatively easy, but in reality, it is a learned discipline.............some folks never learn, some learn quick, some learn a bit slower (like me) - but the info is there!

I know most of the immature dick heads on this site who act more like 8 year olds than traders trying to make money will disagree, but after +10 years in this game and becoming a (finally!) profitable student of http://www.youtube.com/user/SnP500Trader I can absolutely tell you without hesitation that regardless of what vehicle you trade that, #1, the trend rules and #2, important levels have trade signals that repeat!

Watch his free vids, maybe participate in his free chat room and give yourself at least a few months - then see if you don't also agree!

Best to you!

Steve

 

OP - what you are essentially asking is; Who is good at picking tops and bottoms?


Personally - I've been there and tried that - and I can say with 100% confidence - I can't.

 

No kidding. If i was an elite trader i'd be helping people rather than asking questions.

I was just asing cuz i've seen some people say they are counter trend faders but they only fade after a new high/low of day has been made.

 

The truth is, there is no way to predict the market by new highs or lows. The key is understanding the macroenvironment, monetary policy, and the current environment within the cyclical pattern. Different asset classes perform better in a determined environment.

 

This is a totally different question from what you originally posted


IMHO Fading the trend is some of most lucrative trading there is, but it’s also some of the “hardest” trading there is. Let me repeat that – IT IS SOME OF THE HARDEST


If memory serves you wanted to learn price action in another thread – well this will teach you price action.


BUT when you wrong, you have to exit automatically, with out hesitation, with out question, without thinking…., or you will loose money big time….

Trading this way means YOU are consciously choosing to jump in front of a SPEEDING FREIGHT TRAIN...

AND having no pretense that price WILL return to swallow you up for a lose - if you don’t act quickly enough



The set ups (as I see them) is price climbing a cliff (irrespective of its current trend), it slows to a crawl, and then finally fall off the cliff, or the second set up occurs just after an extreme of emotion

Sounds easy – it ain’t – MAKE NO MISTAKE ABOUT THIS



NOTE
I don’t expect you to understand my description, and please don’t think you do – I’m just trying to verbalize what I interpret, but there is a lot more to it.

BIGGER NOTE
Price can also act this way just before it breaks out (either up or down), or speeds away – which is why you’ve got to have exiting skills down pat…


Only screen time, and knowing a stock’s personality “intimately” will give you a snowballs chance of deciphering the difference. Then there’s still a good chance you’ll interpret it wrong…..


IMHO – I do not believe you can learn type of trading – paper trading – just way too intense


There are some other skills involved that I choose not to share – not because I’m trying to keep secrets – but because I do not want anyone thinking they can successfully trade this way based on my lame explanation.



Let me say this one more time – This is the easiest way to loose money I know of

 

The key is learning how to read economic numbers and seperating wheat from chaff.

 

Looks like a tech buy program is being primed.

Guess it was a sell program instead! Ouch.

 

11:45..up we go

close green or only down 80 points? possible.

 

statistical formation over a large sample shows counter trend fading to be very accurate if your scalping for fixed points as i cant verify through stats that after making a new high/low counter trend fading works as ive not tested that.

but what i have is the hour formation with/against the bias or trend whatever you want to call it to be accurate from certain STDEV.

for longer trades trade with the bias.

 

I've had much success fading highs and lows of the day. Fading an actual HOD (top/bottom) picking is a lower probability trade, but fading a double top/double bottom, or lower high, higher low is high reward. The benefit of either trade is you have nice tight stops laid out for you above or below the high/low, limiting your downside.