For those who are a little slow I think this is what the op is getting at.....see attached Entering RTM intraday while staying with long term trend on daily, vice versa The good thing about this is you can take some off at top of intraday RTM trade to bank some profit and let the rest ride if you wish or expect longer term trend to continue Precise entries are nailed by zeroing in your scope and knowing which phase is which, market can only go up down or sideways on all timeframes. Precise entry may take a few tries to nail but the R:R takes care of it once you get it right.
Trend and counter-trend require opposite actions. Explain how you do both at the same time without them cancelling out. That's what the OP was proposing.
I know you think you've explained something with your little squiggly-line pictures but that didn't happen. For one thing, there is no long-term trend on a daily basis. Maybe on a monthly or a quarterly basis but certainly not daily and maybe not even weekly, according to that right-hand chart you posted. The problem with trend lines is that they distort more than any other "trend measurement" what is happening on a bar-by-bar basis.
if your short ,you reduce at support and put them back out on the bounce,following the trend down you are following the trend by keeping a short position and catching the counter trend by reducing and putting them back out ,sell 100 buy back 20 lower,put them back out on the bounce buy them back lower ,etc..cover at the bottom or reduce and add in the morning
Long term trend for some could be defined as the direction of the last 60 minutes. It's all relative. For others it could be defined as direction of past 100 years.... If one is using a 10 min chart for entries and 60 min chart for direction then wouldn't it make sense to enter countertrend on the 10 min to hop on the longer trend for the 60 min? Unless you like buying tops and holding through the retracement then what I said makes sense.
If what I am trying to illustrate isn't congruent with what the OP is trying to say then the OP can elaborate.
It's not a matter of trend vs. counter-trend (or reversion to the mean), because a trend must occur for either to make money. A reversion to the mean trader cannot enter a position and make money if the position does not go the other way. He cannot continue to add to a position if it goes against him and make money, if he's going to make money, it's got to start a trend the other way. A Reversion trader's goal is to get in where the market turns. If a trend-following trader identifies a reversion-to-the-mean concept / strategy on a higher time frame (by this, I mean daily, to trade intra-day), he can use a trend-following method to enter the trade and capture this mean reverting trend / move. This is best accomplished with implementing some sort of measured move. A simple mean reverting concept implementing pivots is described here: http://traderfeed.blogspot.com/2007/10/opening-price-gaps-and-reversions-to.html The goal here is to capture both concepts, as there is a trend inside the reversion to the mean concept. There are areas where a reversion is likely to occur, conversely, there are areas where a continuation is likely to occur. Developing algorithms to take advantage of both situations was the topic. These events (calculated over historical data) do not occur simultaneously in time or price within the same time frame and therefore are not opposite actions.