Fighting the Trend

Definition - What does Fighting the Trend mean?

Fighting the trend refers to a currency trader placing trades that go against the established trend. Many forex traders believe that fighting the trend is a huge mistake that inevitably ends in losses. Most traders identify and trade with the trend to make their profits.

ForexDictionary explains Fighting the Trend

Although most traders go with the trend, some - like contrarians - may take up positions against the trend if the action is confirmed by another type of analysis. Sentiment analysis, for example, may suggest that fighting the trend short-term will ensure early entry into an upcoming reversal. That said, the forex market can continue to be "wrong" longer than most traders can afford to protest it, so fighting the trend is often a losing proposition.
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