Fade the Move: Counter Trend Trading Strategy. Buying Recoveries after Extreme Declines 👊

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Fading the Move! How do you Fade Extremes in Price Safely? www.financial-s... PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Buying Recoveries after Steep / Extreme Declines. Fading Explosive Moves versus Uptrends. The caveat to that is that of course risk will always be there - we can use stops and manage risk but there's always the possibility that something will go wrong so be aware of that. Redoing.
Here we'll taking about fading extremes in price moves. Of course I don't suggest standing in front of a freight train - if you've got a brutal downswing trend trying to find a point to buy is generally a losing game - it is not an easy thing to do. More often than not a trend lasts long than you expect (and this applies for uptrends as well) and you're just frustrated and annoyed and ultimately you won't get the outcome you want. But here I'm talking about explosive moves that are probably unsustainable. What is the difference between an explosive move and a trending move? A trend will keep chugging along day after day, couple of down days and resume..etc i.e. grinding uptrend. This can be deadly for a volatility trader because if you try to short it, it will grind you out. What I'm talking about though is about explosive moves - you know that at some point you're get a mean reversion to a mean. But a reasonable strategy is to fade those extremes and wait for a pop-up to the mean. Some traders will argue this is dangerous and that you should stick to the trend but this setup can be very rewarding in the right market conditions. But you need good structure and need to be very disciplined here. You might get lucky and get a full reversal.
But the real edge is when everyone has a complete disregard for price then you can take the other side of that in the expectation that price might contract back to the mean. If you do this from a day trading perspective you have to be quick as these opportunities don't last long.

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[@philpreston6406]

You are spot on with, reversion to the mean. I don't care, what your trading ( put up a simple moving average 20 on your chart) wait till the daily candle is 250 points/pips over extended from the moving average. 300 pips or points, away EVEN Better!! If the move has been bullish, we simply take a Short ( and WAIT.........Key word PATIENCE!!!!) The price will retrace. WHY? stocks and other tradable instruments, can get away from the 20 moving average - But CAN'T stay there. I've had many winning trades, using this method! MOST Traders, are too impatient, for a profit. Those that wait, get the Cream.

[@danbuffington75]

2:35 "We're all traders here." Finally a presenter that gives the viewer some credit.

[@DantesAwakening]

The first strategy is on the Al Brooks book Trading bar by bar. The major reversal is indeed the most profitable setup that I have today. This guy is giving gold. Be grateful! Thanks!

[@duduwaho8013]

The problem of buying cheap and it got a lot cheaper cost me dearly in the past....with the TL seems to help weed out the real bargain...great video tks

[@kikowhitney]

the video I exactly need! Thanks. One strategy I learned for trading in the muddy trenches below is to be clear with signs of support and to wait for the first resistance to show up....Enter only after that first resistance and take guidance from moving averages. Scary....but, as your video says it, be vigilant with the stop-loss. Thanks

[@absoluttchamp]

I came here for "a very warm welcome" Thanks!!!

[@MrAmbrosse]

This one is relevant to me, as I had a similar situation and ended up selling as it dropped too low. Thanks for the excellent videos.

[@kvjqxzz5905]

this is a great vid - exactly this just occurred in Bitcoin - exhaustion candle down to about $6500, now has steady up momentum (bit oversold on RSI at datetime of this post)

[@savovoutdoors2154]

I managed to make a few big gains on the recent market crash thanks to the fear and volatility but fail miserably on the way back trying to catch the dip. Can you make a video on trading correlated markets or asset classes or How to Trade a Correlation Strategy? Thanks for the videos Mark, appreciate your work!

[@imperatoreTomas]

I like this guy

[@Fret-knot]

Good advice as always. I always trade half size when trading reversals. The timing is tricky.

[@storeymark]

Hey Mark, great video On strategy no.2, can you suggest any markers that indicate that the long candle is an exhaustion candle? Is there any thing about volume that might indicate its exhaustive?

[@YousufIGhouri]

What we are learning here

[@soumenghosh8430]

Kindly explained what r the roles of volume ?

[@andyshortland]

nice one, thanks

[@roselleumali2141]

Another lesson learned. Thank you for the video

[@Diedrikdejonge]

Thanks. Great video. Currently l enter when the price is x points, (x depending on market and if it’s RTH or not + TF) from ma8. I’m trying to get some relations or link to ATR. anyone did some similar?

[@samatheng5161]

Good

[@johnjohnson1313]

Sounds more like dip buying and bottom fishing than fade trade.