What is a 200 day moving average?

The 200 day moving average can be used to identify key levels in the FX market that have been respected before. Often in the forex market, price will approach and bounce off the 200 day moving average and continue in the direction of the existing trend. Therefore, the 200 day moving average can be viewed as dynamic support or resistance.

What is a moving average (MA)?

Moving Average (MA) is a price based, lagging (or reactive) indicator that displays the average price of a security over a set period of time. A Moving Average is a good way to gauge momentum as well as to confirm trends, and define areas of support and resistance. Essentially, Moving Averages smooth out the “noise” when trying to interpret charts.

What is a simple moving average (SMA)?

A simple moving average (SMA) takes the average closing prices of a security over a certain period of time. It is used to smooth out price swings and provide better insight into trends and reversals. How Can I Find the 200-Day Moving Average for a Stock?

How do you plot a moving average?

No matter how long or short of a moving average you are looking to plot, the basic calculations remain the same. The change will be in the number of closing prices you use. So, for example, a 200-day moving average is the closing price for 200 days summed together and then divided by 200.