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EUR/USD
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of clients are net long.
of clients are net short.
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of clients are net short.
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of clients are net short.
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  • Gold remains locked in a descending channel but price has begun to recover and could break higher. Get your $XAUUSD market update from @PeterHanksFX here:https://t.co/TOGIFZlhER https://t.co/lkS2vxx862
  • U.S. Energy Sec. Granholm: Colonial to restart pipeline around 5 PM EST #OOTT #CrudeOil $CL_F
  • AUD/USD sharply lower as investors embrace risk-off sentiment following this morning's inflation data $AUDUSD https://t.co/msnDj1dCrU
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.29% 🇨🇭CHF: -0.60% 🇬🇧GBP: -0.61% 🇯🇵JPY: -1.00% 🇦🇺AUD: -1.49% 🇳🇿NZD: -1.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/3ncLAzThu8
  • AUD/USD extends the decline from the monthly high (0.7891) as the update to the US Consumer Price Index (CPI) shows a larger-than-expected rise in inflation. Get your $AUDUSD market update from @DavidJSong here:https://t.co/2cnyOu67Lv https://t.co/fOr8ZMSqs0
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.23% Gold: -1.26% Silver: -2.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/0j3vSy7Wsi
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.18%, while traders in GBP/USD are at opposite extremes with 66.35%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/4EbJyF3G82
  • President Biden: I see room for a compromise on infrastructure bill $USD
  • President Biden: - I have lifted restrictions on the transportation of fuel - I expect good news from Colonial Pipeline in the next 24 hours
  • I tend to bring this up every couple of years, but the SF Fed has a 'Chair the Fed' game (https://t.co/4nMYPgiNQW) where you can make policy decisions through hypothetical economic scenarios. I wonder what the game's algorithm would say about our current situation...
Entries and Exits Based on Moving Averages

Entries and Exits Based on Moving Averages

Richard Krivo, Trading Instructor

Power Course Instructor’s Response:Your point is well-taken and anyone who has traded for a while can identify with it.All indicators are "lagging" by definition since, in some form or another, they are based on an average of price action that has previously occurred.In the case of Moving Averages, the faster moving average will provide more trading signals and give them earlier. That being said, they will be less valid than the longer Moving Averages since the longer ones are based on a greater number of data points. This is the primary reason that we recommend the use of longer term charts (at least one hour in length) since the signals provided will be more reliable than those generated from "minute" charts.Based on the chart posted, had the trade been taken at the #3 crossover, roughly 250 pips would have been left on the table from the very beginning of the move. However, had the trader stayed with that trade until the exit crossover of the 10 and 20 SMAs which occurred in late September, the gain would have been about 1500 pips. Had a trader stayed in the trade until the 50 SMA was crossed over to the upside in mid-December, the gain would have been about 2750 pips. These pip totals have netted out the pips left on the table at both the opening and closing of the trade.Trying to enter a trade right at the beginning of a move and exit right at the end, will be, as you say, frustrating. And, as can be seen on the chart, it is not necessary to be successful in the long run.

Entries_and_Exits_Based_on_Moving_Averages_body_59819d1277244606-post-day-chart-6-22-10.png, Entries and Exits Based on Moving Averages

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