A 200-day moving average eliminates the presence of daily price fluctuations for periods below 200 days.
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Now, if you want to buy a security you will have to pay the price at which traders are prepared to sell to you at.
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The tendency of statistical data.
trading the forex market
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The Trend Following Method A simple trend following method is to use a 9 period simple moving average of the closing prices and an 18 period moving average of the closing prices.
In that event also use a protective stop, either static or trailing, to prevent profit erosion on the balance of the position.
Market action discounts everything.