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The moving average (MA) is a tool for smoothing out price data by continually updating its average price. The average is calculated over a specified time period, such as 10 days, 20 minutes, or 30 weeks. Using a moving average in your trading has advantages, as well as options when it comes to the type of moving average you should use. Moreover, both long-term investors and short-term traders can benefit from moving average strategies.
There are several strategies to manage the risk that may surprise you. Setting up a risk management strategy that incorporates the Average True Range (ATR) when sizing positions can be one example.
Using the ATR for position sizing will yield a volatility-adjusted stop loss level based on a multiple of the ATR. You need to adjust your position size to ensure that your maximum loss never exceeds your set limit to size your trade. We have a complete guide on Inveslo.com that you can see here. It is recommended to have an ATR multiple of 2-3, but it varies from market to market.
European markets open mixed ahead of EU inflation numbers
The European markets are expected to open mixed following yesterday's late US sell-off, while Tuesday's focus will be on the EU CPI after UK unemployment and wages figures came better than expected.
Read More https://inveslo.com/daily-market-update/european-markets-open-mixed-ahead-of-eu-inflation-numbers
In Asia-Pacific markets on Monday, Hong Kong's Hang Seng Index gained more than 2%, while US stock index futures were modestly higher early on Monday morning after a positive weekly end. So, European stocks are expected to gain modestly on Monday, following the global trend. However, Italy would be an exception due to political uncertainty.
Traders are always looking for ways to profit from market trends. You can take advantage of markets' most essential tendencies by following trendlines, breakouts, and mean reversions.
Trading indicators help us quantify and define the market's behaviour reliably and consistently in this process. Trend-following indicators allow you to objectively monitor and assess market behaviour rather than rely on your abilities. Obviously, you must form a trading strategy based on these signals. Still, it's not wrong to say that they help remove biases from your trading.
We're going to look closer at the five best trend-following indicators that can be used to either measure the strength of a trend or its direction.
In Essence, CFDs are used by investors and financiers to bet if the fundamental asset or security price will climb or drop. Traders can anticipate the price of CFDs moving up or down.
Those who believe in an upward movement of a CFD in price will buy that CFD, and those who predict the opposite direction will sell a position.
Crude oil is the world's most widely traded and most commonly used commodity. Oil prices are primarily determined by the relationship between supply and demand. Demand will drive price increases (if the supply remains stable), and supply will drive price falls (if the demand remains static). Keeping that in mind, let's delve into the key factors affecting supply and demand.