To this end the concept of moving averages is a very useful tool to understand.
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The longer the trend line has been in effect and the more times it has been successfully tested the more important the trend line becomes.
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The price of a given security moves in trends.
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For those who do not wish to trade the trend so aggressively one can use the trend line for placing and moving stops and to initiate new trades.
As you can see from the charts above.
These buyers are made up of previous buyers in the market adding to their positions, intending buyers who missed earlier opportunities and are now buying the dip.