Contrarian AI Buy & Sell Strategy

Overview

About

The Contrarian AI Buy & Sell Strategy leverages Lune Market Analysis Premium and Lune Oscillator Premium to identify optimal trade entries and exits by capitalizing on contrarian signals. This strategy focuses on trading against prevailing trends using advanced indicators such as Reversal Clouds, Clarity AI, and Money Pulse to pinpoint high-probability reversal points. It's designed for day trading, swing trading, and position trading.

Trading Style

• Day Trading

• Swing Trading

• Position Trading

Indicator(s) Required

• Lune Market Analysis Premium

• Lune Oscillator Premium

Indicator Settings

• Lune Market Analysis Premium

  • Signal Mode: Contrarian

  • Signal Sensitivity: 4

  • Signal Velocity: Auto

  • Reversal Clouds: Enabled

  • Candle Coloring: Clarity AI

  • Clarity AI: Short-term

  • Clarity AI Rating Minimum: 3

• Lune Oscillator Premium

  • Sensitivity: Fast

  • Velocity: Fast

  • Market Peak: Enabled | Sensitivity: 5

  • Money Pulse: Enabled | Sensitivity: 2

  • Power Wave: Enabled | Sensitivity: 3

How It Works

Entering Trade

• Bullish Trades: The Lune Oscillator trend must be below the 0 level. Money Pulse must be bullish. Price should be near the bottom of the Reversal Cloud. Enter the trade when a bullish contrarian signal is confirmed with a Clarity AI Rating of 3 or more.

• Bearish Trades: The Lune Oscillator trend must be above the 0 level. Money Pulse must be bearish. Price should be near the top of the Reversal Cloud. Enter the trade when a bearish contrarian signal is confirmed with a Clarity AI Rating of 3 or more.

Stop Loss

• Bullish Trades: Set the stop loss at the recent market low or exit if the Money Pulse becomes bearish.

• Bearish Trades: Set the stop loss at the recent market high or exit if the Money Pulse becomes bullish.

Exiting Trade

• Bullish Trades: Exit the trade when the Money Pulse becomes bearish, a bearish Market Peak is detected, a Trade Exit is detected, or the Power Wave starts to lose momentum.

• Bearish Trades: Exit the trade when the Money Pulse becomes bullish, a bullish Market Peak is detected, a Trade Exit is detected, or the Power Wave starts to gain momentum.

Step-by-Step Walkthrough

Bullish Scenario - Example #1

Step 1

Wait for the Money Pulse to be bullish and the Oscillator Trend to be below the 0 level (indicated by red). These are key bullish indicators.

Step 2

• Wait for a bullish Contrarian Signal. The price should be inside or near the bottom of the Reversal Cloud. Enter a long trade when these conditions are met.

• Set the stop loss at the recent low or exit if the Money Pulse becomes bearish.

Step 3

• Take profit when bearish sentiment is indicated. This can be when the Money Pulse becomes bearish, a bearish Market Peak is detected, a Trade Exit is detected, or the Power Wave starts to lose momentum.

• In this example, profit was taken because a bearish Money Flow was detected.

Bearish Scenario - Example #2

Step 1

Wait for the Money Pulse to be bearish and the Oscillator Trend to be above the 0 level (indicated by green). These are key bearish indicators.

Step 2

• Wait for a bearish Contrarian Signal. The price should be inside or near the top of the Reversal Cloud. Enter a short trade when these conditions are met.

• Set the stop loss at the recent high or exit if the Money Pulse becomes bullish.

Step 3

• Take profit when bullish sentiment is indicated. This can be when the Money Pulse becomes bullish, a bullish Market Peak is detected, a Trade Exit is detected, or the Power Wave starts to gain momentum.

• In this example, profit was taken because a bullish Money Flow was detected.

Conclusion

The Contrarian AI Buy & Sell Strategy excels in guiding traders through precise entry and exit points based on contrarian signals and advanced technical indicators. By focusing on market sentiment and reversal signals, traders can make informed and effective trades. This strategy highlights the power of combining contrarian approaches with detailed market analysis to enhance trading outcomes across various market conditions.