- A trading strategy where an investor attempts to make small gains through a series of trades against the current trend. It is also known as "counter-trend trading".
Contrarian investors perform counter-trend trading strategies - purchasing shares when prices are low and selling when they're high. The investor receives smaller gains since the full market swing is not recognized.
Many counter-trend investors use momentum indicators to determine the best times to execute their trades.
Investment dictionary. Academic. 2012.
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Countertrend Trading — A type of swing trading strategy that assumes a current trading trend will reverse and attempts to profit from that reversal. Countertrend trading is a medium term strategy in which positions are held between several days and several weeks.… … Investment dictionary