"Always be fading"?

[JSSPMK]

Quote from IronFist:

Here's what I'm talking about.

Someone posted an indicator with buy and sell signals. I coded it and realized that if you faded it you would do much better. I attached two charts:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=131870

Buy Lo & sell Hi have been driving markets for centuries, nothing has changed. I woudn't worry about fading a 50/50 probability.

 

[baggerlord]

You can fade a move and still trade with the trend.

 

[IronFist]

Quote from JSSPMK:

Buy Lo & sell Hi have been driving markets for centuries, nothing has changed. I woudn't worry about fading a 50/50 probability.

What?

When the indicator that guy was talking about says to sell, you actually buy. That's more like buying highs and selling lows, except not at the peaks, so there's still room for profit.

 

[NakedNote]

Quote from baggerlord:

You can fade a move and still trade with the trend.

Now, that's trading wisdom right there.

NN

 

[JSSPMK]

Quote from IronFist:

What?

When the indicator that guy was talking about says to sell, you actually buy. That's more like buying highs and selling lows, except not at the peaks, so there's still room for profit.

What? Don't ask a fella full of vino why, as I am short on because at the mo. Why Buy Lo & Sell Hi? Because that's the way of the world, all you need to do is widen the time frame. That's how wealth has been made & preserved for centuries.

Some people will swear by consumption of alchohol making them warm at cold temperatures, reality is that this is a temporary illusion, in fact what it creates is the reverse effect, but because you are marry you don't give a monkeys. But the fact is your body is deceived & cools down a lot quicker after the effect of alchohol wears down. Hot drink does more good than alchohol, but how many people will agree with you?

 

[Illum]

Quote from baggerlord:

You can fade a move and still trade with the trend.

Trying very hard to learn this. This thread is great, thank you to all the posters. Looking at FSLR. I am very new to this, so my choice may be poor. But thanks again for all the posts.

 

[JSSPMK]

Quote from Illum:

Trying very hard to learn this. This thread is great, thank you to all the posters. Looking at FSLR. I am very new to this, so my choice may be poor. But thanks again for all the posts.

It's not hard, it just takes experience, like any other profession. What it means is that if the predominant trend is down & you short a retracement you are trading on the right side*.

*Subject to various terms & conditions.

 

[contrary]

Quote from chrismontez:

I only know of 2 systems that have historically proven to work , although there are probably others. The 1st is fading the gap. There have been a number of papers published showing that if a stock gaps a certain percent at the open and you go against the gap, the percentage is high that within 3 weeks your position will be making money. A classic example was Freddie Mac the other day. Big gap down at the open and up 50% within the same day. Osip and Apple are other companies I've faded the gap on for big gains.

And the other system is??

 

[Illum]

Quote from JSSPMK:

It's not hard, it just takes experience, like any other profession. What it means is that if the predominant trend is down & you short a retracement you are trading on the right side*.

*Subject to various terms & conditions.

Ah I see, I am looking at taking a short in an uptrend, so here I am wrong with an analogy to FSLR. I take it, that if it were to correct and I went long in the face of it, that is what is being discussed. Sorry, let me get my noob ass out of the way of a great thread.

 

[marketsurfer]

Quote from ProfitTakgFool:

Just a quick thought while we're on this topic, and this is likely to ignite some heated debate......a system that has the words, "Trend Following" is inherently flawed by virtue of having the word "follow" in it. How can you be a leader by following and how can you win if you aren't a leader?

exactly, well stated. there are several threads on elite talking about trends. the classic line is "if you flip a coin 20 times and get heads 20 times, are you in a heads trend?"

surf