This smoothing effect of price change increases as you use longer and longer periods as the average.
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It is also not necessary for what I am trying to achieve and that is to give you a broad idea of how the markets work and some way to trade them.
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Do we see a lot of buyers or sellers at the entry level?
euro currency trader
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To draw a trend line, draw a straight line from the lowest low of the period to the next lowest low.
As the price continues to rise your stop 'trails' higher in tandem.
This was our entry and we would place a stop loss order above the most recent high.