But remember a system is only as good as its weakest link; make sure you know what it is. Short sell when prices rally to or slightly above, the SMA. The exponential moving average has become more popular in recent years due to the quicker calculations computer software provides. Auto-trading programs like expert advisors will require longer test periods than ordinary indicators. After demo'ing your trading system, move on to live trading. When the moving averages are rising, it indicates an uptrend. As with all other technical indicators, MAs have a relevance when correlated to price movement.
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