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Moving Averages as a lagging indicator, confirming trend rather than anticipating it, is considered less reliable by many. But, combining Moving Averages with Fibonacci number, and following price action around it, can give quite a powerful signal. In this case, a Simple Moving Averages on Close price, combined with Fibonacci number (89) as it period. In short, price can either “break through” SMA89 or “bounce back” from it. But then, as can be seen in the following picture, there are many breaks as well as bounces; and not all of them are valid signals which shows profitable opportunities.
Stochastic oscillator – is a technical indicator designed by the president of "Investment Educators" corporation George C. Lane in the end of 1950-s. Stochastic estimates market momentum and shows position of present price against price range (between High and Low) for a definite time period. It is measured in per cent from 0 to 100. According to George C. Lane, “doesn't follow price, it doesn't follow volume or anything like that. It follows the speed or the momentum of price. As a rule, the momentum changes direction before price.”
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