The Big banks use the SMA so i use that one both as to read trends and as dynamic support/ressistence often in confluence with levels of interest
What's the difference between SMA and regular moving average? Edit: Does S mean Simple? I thought it was Smoothed moving average or sth.. I am using 200 period moving average and i find it very useful. I also have 20 period and 100 period on the charts, but i must say i haven't found much use for them. No use for the 20period at all, perhaps a "value" area, 100 works some of the time, is good if in confluence with the 200period MA.... But it adds confidence to the trade if you are looking to get short/long and all the lines start to converge upwards/downards... Just showing the momentum building up i guess.
i like to use the 200sma as a target sometimes when taking a trade between the fitty and 200, in the direction of the 200, know what i mean vern?
%% Both are good; 200 day wma also. 50 weeks ma is helpful/50/55 dma. I don't like 65 dma but the WSJ likes it /may help sell papers/LOL Wisdom is profitable to direct, thanks...………………………………………………………………………………….
i like to use the 200sma as a target sometimes when taking a trade between the fitty and 200, in the direction of the 200, know what i mean vern?
%% S=simple E= exponential W= weighted 50 week ma can help sometimes, a bit different from 200 but close............................................................
MA and SMA are one in the same. And then there are the equally useless EMA or XMA, WMA, GMMA, TEMA, LWMA, AMA, FAMA, VIDA, DEMA and on and on ... When all you need is price.