Fading
a.k.a. Fade, Fade the move
Trading against a recent move, betting that it has gone too far and will reverse.
In plain English
Trading against a recent move, betting that it has gone too far and will reverse.
To fade a move is to bet against it: sell a sharp rally or buy a sharp drop, expecting price to snap back. Traders fade spikes after news, moves into strong resistance or support, or crowd euphoria.
It can work well in ranges, and it can be brutal in a real trend, where the move just keeps going. A tight, pre-planned stop is essential.
Don’t be that stickman
Fading a strong trend again and again because it 'has to come back'.
Keep this word for good
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