The Anti: Linda Raschke's Counter-Trend Strategy for Volatile Markets

"The Anti": A Counter-Trend Strategy for the Bold

"The Anti" is a counter-trend strategy developed by Linda Raschke that seeks to profit from the exhaustion of a trend. It is a more aggressive strategy than the ideal solution, but it can be highly profitable in the right market conditions.

The Logic of The Anti

The Anti is based on the idea that after a strong trend, there is often a sharp and swift counter-trend move. The strategy aims to capture this reversal by entering the market just as the trend is showing signs of weakness.

The Setup

1. Identify a Strong Trend: The market must be in a clear and sustained trend.
2. Look for a Climax: The trend should show signs of exhaustion, such as a large price extension or a high-volume reversal bar.
3. Fade the Move: The entry is placed in the opposite direction of the prevailing trend. For example, in a strong uptrend, a sell order is placed below the low of the climax bar.

A Word of Caution

Counter-trend trading is inherently risky. It is important to have a tight stop loss and to be prepared for the possibility of the trend resuming. The Anti is a strategy best suited for experienced traders who are comfortable with a higher level of risk.