Also known as a retracement.
Gains had by trading on countermoves are usually smaller because the full market swings are not recognized. Risk of loss is also high because traders often mistake a reversal for a countermove or retracement. For this reason, having a stop-loss in place is imperative.
For example, if the stock price moves up $15 and stays around the new level, it is just considered a move. But if the stock price moves up $15 then quickly moves down $11, it could be considered a countermove.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Countermove — Coun ter*move (koun t?r m??v ), v. t. & i. To move in a contrary direction to. [1913 Webster] … The Collaborative International Dictionary of English
Countermove — Coun ter*move ( m??v ), n. Countermovement Coun ter*move ment ( ment). A movement in opposition to another. [1913 Webster] … The Collaborative International Dictionary of English
countermove — [kount′ər mo͞ov΄; ] for v., also [ kount΄ər mo͞ov′] n. a move made in opposition or retaliation vi., vt. countermoved, countermoving to move in opposition or retaliation … English World dictionary
countermove — 1. noun A move in opposition or response to a preceding move move and countermove 2. verb To move in opposition or in retaliation … Wiktionary
countermove — kontrmanevras statusas T sritis Gynyba apibrėžtis Operacija, vykdoma reaguojant į priešo judėjimą arba užbėgant už akių priešo judėjimui. atitikmenys: angl. countermove pranc. contre mouvement ryšiai: dar žiūrėk – kontrataka … NATO terminų aiškinamasis žodynas
countermove — n. & v. n. a move or action in opposition to another. v.intr. make a countermove. Derivatives: countermovement n … Useful english dictionary
countermove — An operation undertaken in reaction to or in anticipation of a move by the enemy. See also counterattack … Military dictionary
countermove — n. v., countermoved, countermoving. * * * … Universalium
countermove — Synonyms and related words: action, ad hoc measure, answer, artifice, contrivance, coup, course of action, demarche, device, dodge, effort, expedient, gimmick, improvisation, jury rig, jury rigged expedient, last expedient, last resort, last… … Moby Thesaurus
countermove — n. move designed to counter or combat another move v. move against, move in opposition to … English contemporary dictionary