Forex encyclopedia

Quite often, many traders are too much concerned with strategies and methods for entering market forgetting to select a correct tactics for leaving trading positions. Beginning traders can leave positions having just seen a minor profit in the terminal. What matters is to enter correctly, and then to rely to market in the part of profit fixation. But unfortunately the market is arranged so that you cannot to enter the market correctly at topper moment all the time. When price moves against your position, every trader must be armed with tactics protecting deposit from dramatic losses. One of such methods is Money Management Stop (usual stop).
Moving Average Envelope is a technical indicator consisting of two moving averages shifted up and down for a certain percentage. Deviation is measured from central moving average that can be put on chart. This indicator is mainly used to define borders of current price movement or as oversold/overbought indicator, when under the pressure of bears or bulls prices reach extremes. Also envelopes are good in showing market phase – under trend or flat. This figure is very similar to another equally well-know technical instrument Bollinger Bands, BB.
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