This strategy essentially puts you on the same side as inter-bank players with access to order flow. The strategy has an even higher probability of success when other important support or resistance levels, such as Simple Moving Averages, Fibonacci levels or Bollingers, converge at the figure.The transparency and round-the-clock trading characteristic of the currency market makes it articularly conducive to trading based on technical analysis strategies. Technical analysis is very popular within the currency markets and is used by the entire spectrum of participants, from hedge funds to day raders.
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.
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”.