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A stochastic strategy works to predict the price inflection points byparing a forex pairs closing price to its recent price range. provided that the Trading involves the risk of loss as well as the potential for profit. The actual price may not reflect the underlying value.

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The reason the 50 day moving average is so important is because many Hedge fund managers and institutional traders rely on the 50 day moving average to make buying and selling decisions, so its just an indicator that the majority of pro traders use and you will notice that sentiment tends to change when the index gets below the 50 day average. Tradlng D Hey (Below) Fast forward twenty-odd years, keep emotional and hopefully make huge downward breakouts.

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