UNDERSTANDING THE USE OF 200 SMA AND TRENDLINE IN DAILY TIME FRAME


The 200 SMA is a popular indicator widely used by professionals and even all traders. The knowledge of this indicator will guide us in taking trade decisions for better profit yields.
Our in depth research revealed the application of 200 SMA and its relationship with 10 SMA in Monthly Time Frame.
How do we use this indicator to our profitable trading? We first of all have to know the general market condition in the monthly time frame. 200 SMA is acting as a mean point where trade decision can be made. The price will react to this SMA as either as breakout or continuation of the trend.
When price is correcting towards 200 SMA, it will establish a Trendline. This Trendline will help us to gauge the role of 200 SMA in the next price action. click here to continue reading UNDERSTANDING THE USE OF 200 SMA AND TRENDLINE IN DAILY TIME FRAME

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