Countermove

The movement of a security's price against the current trend. A countermove occurs soon after the original trend and in the opposite direction, but by a lesser amount. Countermoves allow investors to try to "buy low, sell high," by taking advantage of the price retreating along the current trend to obtain a better entrance.

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. . 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

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