Does anyone here successfully fade (or trade against) classical trade setups/patterns, ect... For example, divergences are thought to signal a possible reversal. However, they fail so frequently, especially when countertrend to the high-time frame trend, that I wonder if you could use them for trade entry. The rationale is that you need someone to hold the bag to offset your entry and why not hand it over to the newbie that just read their first TA book that preaches about divergences. The same for go for any abuse of the various technical indicators--ie overbought/os on stochatics, MACD crossover, ect..... Any thoughts on this issue.
Fading classical trade setups
- Thread starter jbob
- Start date
Ju got it mang.
You should try fading this set up then. http://www.trade-ideas.com/Help.html#SD based on the logic behind your approach.
yeah why not.. not when the offer is in the proccess of stepping down, but when the size is gone, and you send a 300 share market order to see if they are still there. Thats not a bad fade trade. High probability of liquidity bids, showing up below you. Also there are other factor, like amount of divergence and trend so I would say Diamond you loaded that statement pretty well for the guy.