. Since price has broken lower than support temporarily, traders would look to place a stop slightly below the level of support. The limit can be placed at the level of resistance as price has approached this level multiple times. For short positions, this will be reversed and stops can be placed near resistance with limits placed at support.can be an effective tool to filter what direction a currency pair has trended.
. As price rises, so will the MA and the stop should be moved to wherever the MA is. This creates a safety net in case price turns sharply.
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