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In panel 3, the red EMA continues expanding, but flattens and turns down as prices drop into a trading cycle bottoms at "A". Prices did not close above the blue EMA indicating the uptrend is still intact, and the mechanical buy signal generated at "A" would be an excellent buy. As the uptrend continues, the expansion continues to increase followed by a slight downturn in the red EMA as prices drop into a trading cycle bottom at "B". Prices remained above the blue line offering an opportunity to go long. |
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