fading

[AlexSomov]

've noticed the term being used on this board a few times and it's the main reason why people don't describe their trading system if it is successful.

the only problem i have with accepting this idea is why would any other trader want to try and fade out your system? i maybe wrong here but they will be betting in the opposite direction of movement that you anticipate. what reasoning is behind this unless they think the market is going down? i can't see anything being gained from absorbing someone else's trade, so is fading just scaremonger talk?

the only way fading can work is if you can make the markets move, but then you would be bullying the markets more than you would be trying to fade someone elses system.

[Aliciaet]

my opinion is that fading is a term used by people who's system starts failing. it's not because people are trading against them, but because trending systems don't work when it's not trending.

can someone shed some more light on this topic of fading?

[alutixusini]

You fade an up trend by selling at resistance = you lose money

[Andersenhek]

There are people who will short at previous resistance after a clear up trend before any downturn, thus inviting loss.
I was trying to be pithy for a change rather than using far too many words as I often do ;-)
Sorry to be too obtuse.