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Double Moving Average Bounce

By Adam Milton, About.com

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Wait for Price and Moving Average to Touch

Double Moving Average Bounce Chart

Wait for Price and Moving Average to Touch

Wait for the price to touch the long moving average, which happens when the price trades at the current moving average price. For a long trade, the low of the touching price bar can be at or below the moving average. For a short trade, the high of the touching price bar can be at or above the moving average.

In the example trade, the price touching the long moving average is shown by the yellow arrow, and the price bar that touches the moving average is shown in white.

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