🇬🇧 LEARN TO TRADE EVERY DAY – SIGNS A TREND IS ABOUT TO REVERSE (COUNTER-TREND TRADING)
🧲 “If you’re always the one catching falling knives or shorting too early — this post is for you!”
Counter-trend trading is a double-edged sword — get it right and you win big, get it wrong and you bleed fast.
Today, let’s break down 5 powerful signs that a trend may be ending — so you can enter safer counter-trend trades with confidence.
🔍 5 SIGNS A TREND IS NEARING EXHAUSTION:
1. The trend has extended too far + starts losing steam
→ Price slows down, making lower highs or higher lows.
2. Touches a strong support/resistance (key level)
→ Price reacts sharply at a level where it reversed before.
3. Reversal candles appear (pin bar, engulfing)
→ Even stronger if they appear at a key level.
4. Volume fades, then spikes at turning point
→ Suggests big players are stepping in.
5. Break in structure + failed retest
→ Price breaks trend structure and can’t reclaim old levels.
🧠 TIPS:
- Counter-trend trades have higher risk
→ So size down and always use a stop loss.
- Don’t guess tops or bottoms — wait for confirmation
→ You don’t need to be first in, you just need to be right.
“Counter-trend trading isn’t wrong — it’s wrong only if you enter without clear signs the trend is ending.”
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