Because there are two moving averages with different "speeds", the
faster one will obviously be quicker to react to price movement than the
slower one.
When a new trend occurs, the fast line will react first and
eventually cross the slower line. When this "crossover" occurs, and the
fast line starts to "diverge" or move away from the slower line, it
often indicates that a new trend has formed.
One of the major differences between the forex and stock markets is the number of trading alternatives available,There are so many advantages to trading Forex than trading stocks,Is trading forex better than trading stocks?
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