Contrarian Trader Tops And Bottom

N

nasir

Hey just wanted to connect start a convo on trading the tops and bottoms of the market and the contrarian way.

I have asked other traders and other forums and most repsonses are you can't trade the top or the bottom or what is a top or a bottom or my favorite you can only see the top and bottom in hindsight after the trend is over...

All the responses have some merit but since I have been trading the tops and bottoms of the market for years I realized that this is an art and edge unto itself. Everyone wants to catch the trend, and I do as well I just enter at the turns of the market to create a low risk high reward opportunity.

Now with all that being said their is no one way to make money we all have our own beliefs and values of what we think is hard or easy. Trading the market is a easy task compared to other things I have done in my life, what makes it hard to people is the expectations they have about trading. This game is all mental.

So fire away your comments and thoughts. And let me know your thoughts on contrarian trading and trading the tops and bottoms of a market and I ll add my framework for how I trade them over time.
 
I trade the daily chart

Thats good to know most traders that I meet online are trend followers and they despise trading the tops and bottoms the edge is trading price at the hard right edge no need to confirm a trend or predict just trade
 
The first tops are only in hindsight. they are usually news driven and not predictable. there is no such thing as a ' technical overbot top'.... however, once a top is established, retests are trade-able, sometimes.

Bottoms are visible from a mile away. huge volume vomit dump, followed by sharp rebound to establish good value, followed by a retest.... that's when you go in for the picking... this is explainable by logical human psychology, no technical analysis voodoo tea leave reading.

Tops and bottoms are not symmetrical.
 
dozu888 said:
The first tops are only in hindsight. they are usually news driven and not predictable. there is no such thing as a ' technical overbot top'.... however, once a top is established, retests are trade-able, sometimes.

Bottoms are visible from a mile away. huge volume vomit dump, followed by sharp rebound to establish good value, followed by a retest.... that's when you go in for the picking... this is explainable by logical human psychology, no technical analysis voodoo tea leave reading.

Tops and bottoms are not symmetrical.
More...


Interesting take, tops and bottoms are not hard to identify if you have a framework to identify it. I trade them all the time, it doesnt require volume or voodoo technical analysis its simply highs and lows of the market
 
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