So, what does ‘being contrarian’ mean to us? It is simply a warning that we should sit back and wait to see what happens. The Random House Unabridged Dictionary defines “contrarian” as “a person who takes an opposing view, esp. one who rejects the majority opinion, as in economic matters”. The key to that definition is “one who rejects the majority opinion”. This doesn’t imply any trading decisions; it’s simply a state of mind. It means we don’t enter any new trades until the market is no longer contrarian, or, until it gives us a Failure Swing and we can trade the opposite trend. It’s that simple. Contrarian simply means, “Be careful and don’t enter any trades at the moment.”
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