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Double Moving Average Bounce

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7 of 8

Wait for the Trade to Exit

Double Moving Average Bounce Chart

Wait for the Trade to Exit

Wait for either the target or stop loss orders to be filled, which will happen when the price trades at either the target or stop loss prices. Like the original moving average bounce, the double moving average bounce trade can take anywhere from a few minutes to a couple of hours to reach either the target or stop loss. The trade does not use any target or stop loss adjustments (except perhaps moving the stop loss to break even at a suitable time).

In the example trade, the target (1.5740) is shown by the green horizontal line, and the stop loss (1.5810) is not shown because it is not visible on the chart. The example trade easily filled the 50 tick target, and actually went 133 ticks into profit before any type of exit signal occurred.

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  5. Double Moving Average Bounce Trading System - Trading Using Two Moving Averages as Support and Resistance

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