I’ve seen too many things go to zero, stocks and commodities. My metric for everything I look at is the 200-day moving average of closing prices. “You always want to be with whatever the predominant trend is. Even legendary trader Paul Tudor Jones mentions it in one of his trading lessons. This is one of the biggest signal lines many investors and traders watch to see if bulls or bears win and it becomes support or resistance. Even financial news channels will discuss the line when it is lost or retaken by price on a chart. ![]() The most popular moving average used in technical analysis is the 200-day simple moving average. The charting platforms that have default settings commonly use simple moving averages on their basic charts. Most new traders start with simple moving averages when they start. Overall, simple moving averages are used more than exponential moving averages on charts and when making trading decisions. They can be self fulfilling prophecies as buyers and sellers take action as price crosses the line. ![]() The popularity of specific moving averages on different time frames can give them meaning as more people are watching them for signals. ![]() What are the most used moving averages on charts and in technical analysis?
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