Wednesday

Nuances in short term MA's


In the chart below, while price repeats its behaviour moving to a zone, the relationship between price and the short term MA differs. This relationship can be used to aid both entry and exits. See chart for full explanation using a real time trade in RIO

To summarise: if price gets away from the short term MA expect some rubber band action (in opposite direction) - if price stays with short term MA - expect price to continue in direction of MA(s)

Click on image to enlarge



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