When making a counter trend trade, you are looking to profit from the swings higher or lower against the primary trend.
Counter trend trading is so popular because you can do it in any market and time frame. You can also make short sharp trades and profit from going both long and short.
Most counter trend traders will be swing traders looking to book a profit when the price makes a swing against the apparent trend.
In the example chart below, you can see a clear trend lower. Price had been making a series of lower highs and lower lows.
A counter trend trader would be looking to buy the swing low and make a profit as the price moves higher against the trend lower.
Counter trend traders will often analyze the price action and can use popular indicators like the moving average to help them find their trades.
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