[1/31, 12:01 PM] Wikibit: This trading involves taking positions that go against the prevailing market trend, betting that the trend will reverse or experience a short-term pullback. This strategy is based on the belief that prices will correct after reaching an overbought or oversold condition. Key Points: 1. Risky Approach: Since it goes against the trend, counter-trend trading can be riskier than trend-following strategies. 2. Indicators: Traders often use indicators like RSI, MACD, or Bollinger Bands to spot potential overbought/oversold conditions and predict reversals. 3. Entry & Exit: Trades are typically opened at resistance levels during uptrends or support levels during downtrends. 4. Market Conditions: Best suited for ranging or consolidating markets, where large price trends are not expected. While potentially profitable, counter-trend trading requires strong market analysis and risk management due to its higher risk nature. [1/31, 12:02 PM] Wikibit: #firstdealofthenewyearFateema #firstdealofthenewyearFateema