Trading counter-trend is usually considered a bad idea, and a strategy that requires more skill than with-trend trading. However, the Dax can reverse on a dime – or at least very precise levels – and these can be incredibly profitable trades.
This is what I believe anyway. I can find out how true this actually is by using the Neutral Zone setting in Edgewonk.
So I apply my Rule of 3; I don’t trade a single level counter-trend unless it’s a strong level i.e. unfilled gaps, weekly and monthly pivots and H4 TLs. Again, I don’t know that these are strong levels and will monitor whether this is true using Edgewonk.
The important thing is to make sure that the entries are very precise and that the market can easily get to BE
But the good thing was that I took the H-C-B that this trade created. My entry left enough room to get 1:1 before a possible bounce at SUP 2/weekly S1
