Anti

Style:                    Mean Reversion
Trade Type:       Trend termination


anti


Essence:

  • Trend integrity:
    • Mature
    • Loss of momentum, HHs “rolling out of steam”
  • Last trend leg: (either of)
    • Overextension, climax, beyond upper K-band
    • Failure test
    • HHs “rolling out of steam”
  • First pullback (=1st counter-trend leg)
    • strong countertrend momentum setting up LH
    • Could this pullback create an emotional reaction in trend traders?
  • Pullback vs 1st counter-trend leg:
    • Tight consolidation near extreme of the 1st counter-trend leg

Entry:

xxx


Initial SL:            

xxx


Management: 

xxx


Profit target:     

xxx


Thoughts:          

Anti is (initially) a countertrend trade, thus requires more active management

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