Thus, if you were to set your stop loss just beyond the dynamic SR, wouldn’t it make sense? You can think of it as a “barrier” that prevents the price from going through it. When the market is trending, price tends to bounce off at dynamic SR (which is an area of value). These are areas of value on your chart that’s identified using MA (what you’ve learned earlier).Īnd this can be a powerful technique to set your stop loss. How to use the moving average to set your stop lossĪnother term you need to understand is dynamic Support
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