A fundamentalist will often examine the true value of shares in a company based on its assets, earnings, and dividends.
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Dow himself never actually used the phrase.
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Movement of this average is effected by adding the next new value of the set and subtracting the first value of the set and again dividing by the same number of values in the set being studied.
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In a rising trend a falling price often finds support and in a falling market rising stock prices often find resistance when they reach the level of the moving average.
In this way you lock in profits and you are still in the game should the trade continue to go in your favor.
You may use "programmed" stops if your broker offers them.