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przemyslaw-radomski

Are short counter-trend rallies important at all?

May 20, 2011, 12:00 PM Przemysław Radomski , CFA

Why should one bother with a counter-trend rally if the more important trend is down? The prices will most likely decline after a couple of days and timing your bet on higher prices may not be that easy. So why would I want to risk when the possible gain is small? What do you think?

Generally it's just a matter of one's preferences. We have many subscribers, who are happy to trade even daily upswings, so the information about a several-day/week rally is important to them. On the other hand, more long-term oriented Investors might simply ignore these short-term suggestions and focus on more long-term-oriented part of our analysis.

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