Trading against the trend.

Most recommendations talk about trading with the trend; this option is considered less risky and more promising.

But there is also trading against the trend, which, surprisingly, also brings good profits to some traders.

Trading against the trend - opening trades against the existing trend on a working or older time period.

There are several options for such trading, on the basis of which various Forex trading strategies are formed.

Trading on pullbacks.

Everyone knows that 60-70 percent of the time, the price moves against its main direction, so to speak, the trend.

This is due to a phenomenon called a pullback or correction , which usually occurs after sharp trend movements.

Knowing this pattern can lead to successful trades; the key is to correctly identify the entry point and close the order in time before the trend begins.

A correction typically occurs after the release of strong news; more precisely, the news is released first, followed by a trend surge, and then a pullback.

Many news traders exploit this pattern, first opening a trade in one direction and then closing the previous one after the correction begins. This significantly increases profit margins.

Scalpers often use pullback trading, as their trades rarely last longer than a few minutes, so with the right skills, they can profit from any price movement.

Trading in the channel.

Another strategy that allows trades to be opened in both directions is channel trading, which is described in detail in the article " Scalping in a Price Channel ." To use it, simply plot support and resistance lines, and trade against the trend.

The stochastic indicator is often used for this type of trading , with trades opened based on whether the price is in the oversold or overbought zone, ignoring the trend direction.

Despite the examples given, counter-trend trading has always been and remains riskier than the opposite approach, so exercise extreme caution when using it.