It is necessary to separate two fundamentally different concepts that technically look the same: a set of positions in parts in a certain price range and the actual averaging.
In both cases, the trader add volume to the trade when the price goes against him, thereby reducing the average entry price into the trade. The difference is that in the first case, the trader has determined the entry range in advance, divided the working volume into parts, enters the position gradually as his limit orders are executed and understands in advance under what events and at what price he will exit the transaction at a stop-loss. In the second case, the trader thoughtlessly averages the entry price into the position, increasing the trading leverage, increasing the risks in the hope that the price will sooner or later go in his direction, but often this approach only leads to the forced liquidation of the position of the position and the loss of the deposit.
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