Counter-trend trading is popular among traders due to the high potential and low risk entries. Typically, a trader can enter into a counter-trend trade with a tight stop loss close to the entry, if the trader is skilled at picking tops and bottoms of trends.
Of course, picking the tops and bottoms is hard, and more often than not, traders find that counter-trend trades are simply too difficult – they find that they are 'catching falling knives'.
This strategy is a method that allows you to find the tops and bottoms of trends using a mechanical approach (although there is some discretion using Fibonacci and support and resistance), in order to find strong entry points for counter-trend trading.
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