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Traders edge indicator1

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Trend Confirmation: The primary trend is determined by the alignment of the long-term EMAs (e.g., 100 and 200). The trade direction should align with this overall trend.

Entry/Exit Signals: Shorter EMAs (e.g., 9 or 20) are used for high-probability entry points. Pullbacks to these faster EMAs within the context of a strong trend are common entry signals.

Dynamic Support and Resistance: The various EMAs and the VWAP line often act as magnetic levels where price tends to pause, reverse, or consolidate.

VWAP as Mean Reversion Target: In a volatile market, if the price moves significantly away from the VWAP, it may be considered "overextended," and a mean-reversion move back towards the VWAP is often anticipated.

Penafian

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