I won't go into their complex mathematical derivations of these.
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What, in effect, the moving average does, is to eliminate the fluctuation of price in all time periods below the number which is chosen for the average.
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Stop below the current price if you are long.
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A moving average (MA) is a way to try and eliminate or minimize the fluctuations of the numerical value of price fluctuations we are observing.
Others may use technical analysis principles to set stops.
Jumping the gun can be risky; the entry level may never be reached.