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If we conditionally divide the entire trading process into five stages, then three of them can be attributed to intellectual stages. During these stages, brainstorming comes first. And the remaining two stages can be called reflexive. These stages are applicable not only to a certain time interval of a trading session, but also to each individual financial transaction.
Typical Price of Moving Average represents a combination of a Simple Moving Average and Pivot Point Method. With the help of this indicator, an average price for a certain time cutting is determined. Resulted value is further matched with present price and moments for opening trades are defined. Signal for purchase is when Typical Price Moving Average crosses price chart from bottom to top. If moving average crosses price chart in the opposite direction, it is a signal for sale. Also Typical Price of Moving Average is able to serve as resistance or support level.
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