Fading

Fading
This is defined as a trading method in which a dealer assumes that a fast rising movement is done and acquires a small position on the possible reversal. This method can be very dangerous in the trending markets as going against a powerful trend lessens the possibility of profitability. This method can be rewarding in the markets bounded by range as a powerful level of resistance has beenset up, raising the possibility of the future reversals and resistance at that specific level.