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Using Moving Averages as Risk Management Tools
Moving averages are primarily used as trend indicators and trend filters. They are quantified technical trading indicators that can be used for backtesting and signal creation. Using moving averages to capture profitable trends are only one side of their usefulness. What enables moving averages to work as profitable technical trading tools is their ability to manage risk. Here are five ways to use a moving average as a risk management tool. 1. Moving averages can create good risk/reward ratios by establishing the risk in any trade entry by using a moving average as a stop loss. 2. After an entry with a longer term ... (full story)
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- Mar 12, 2020 4:37pm Mar 12, 2020 4:37pm
- nbfx
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- hasib
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MA provides the market's current direction and strength.
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- Bigbossab
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