200 Moving average importance

[Basoah]

Hi guys,

Just a quick advice to traders struggling to be on the right side of the market. Use the 200 simple moving average to guide you. It is a very simple way of knowing what the market is doing and where it is heading. It even works better on shorter time frames (eg 15mins 10 mins). Watch out for situations where prices move in and out of the 200MA several times within a day or two. It gives an indication of market caught up in a ranging mode.
Cheers!

 

[GammaJammer]

Oh the irony of using 200 period smoothing on micro timeframe charts. hmmmmm

 

[RichLady]

stick a 200 and 100 ema wtfa on a chart, every time it hits the band make sure you call 0800 11 11 11 then ask for dorothy and say " cheese and crackers" works every time..

 

[Hoggums]

Why 200 moving average - what's wrong with 180 or 250? Perhaps you can tell me which is bestest.

 

[foredog]

199, get in one step quicker, every mug uses 200

 

[RichLady]

i'll go one step further and use a 198. beat that!

 

[dcraig1]

i'll go one step further and use a 198. beat that!

Is it a fib number ?

How about it's star sign if we call it the 198th day of the year ?

 

[foredog]

i'll go one step further and use a 198. beat that!

197.5

 

[blancspa]

Take the speed of the fastest men's tennis serve ever recorded?
Which is 155mph or 249.4kmph by Andy Roddick

Open FTSE 100 chart daily
input 2 moving averages = 155 and 249.4, enjoy

 

[trendie]

count the distances of major peak to peak, and trough to trough.
then use half that as your MA, as you have the most common cycle, and more likely for it to hit.
This needs to be verified on a rolling basis to factor in changes.

for example, if the major peaks are 120 bars apart over past 3 months (using 4hrs), use 60-EMA.

NB: note that the counts between troughs may not be the same as the peaks, so you could have 2 separate MAs; one for optimum peaks, (points at which you would short), and one for optimum troughs (points at which you would buy).

For example, markets fall faster than they rise, so asymetric MAs (one for optimum longs, one for optimum shorts) makes sense.

EDIT: re: "where prices move in and out of the 200MA several times"
If you have to wait for several losses you're pretty much dead. Two consec losses and you should step back and assess whether you are still in a trend or not.

 

[Basoah]

EDIT: re: "where prices move in and out of the 200MA several times"
If you have to wait for several losses you're pretty much dead. Two consec losses and you should step back and assess whether you are still in a trend or not.

Trendie, thanks for that correction. 'Several times' isn't the appropriate phrase to use.

 

[shadowninja]

Don't hedge funds use 200SMA on the Daily chart?

 

[GammaJammer]

tons of people do. One the few MAs that are almost universally watched. Definitely in FX

 

[shadowninja]

And so it becomes important...

 

[Pippy5000]

the moving averages are irrelevant if traders aren't using them..

100.. 200.. fib.. whatever.. find out what the BANKS are using and use THAT on a pair..

 

[GammaJammer]

not just the banks. But I am telling you, if someone said you can only ever look at one moving average for the rest of your life -all others are banned for you, I'd take the 200 day sma. Troof.

 

[Ghosttrader]

The 34 EMA, 55 EMA combined with the 200 SMA. That is the killer MA combination. The big guns wont tell you this secret. Try this on th 15min or 10min chart and watch with amazement how prices hit these levels!! Test this guys and lets discuss it.

(34 and 55 are Fibo numbers)

 

[evergreen1]

hey

how can we use the MA bcz i dnt know about it how to use it.how can we get the benifite of MA in 30 minys of chart.i am waiting for your good advice.

Hi guys,

Just a quick advice to traders struggling to be on the right side of the market. Use the 200 simple moving average to guide you. It is a very simple way of knowing what the market is doing and where it is heading. It even works better on shorter time frames (eg 15mins 10 mins). Watch out for situations where prices move in and out of the 200MA several times within a day or two. It gives an indication of market caught up in a ranging mode.
Cheers!

 

[cpngtw]

197.5

how could you laugh at someone else technic if it works for them? What you are using may also be laughable by someone else

 

[evergreen1]

you people can also use it that wts the market trand it going up r down. but its peroid denend on the trader how he get the befinit from this.if u get MA200 its good for u but may be other cnt get the same result on that MA200 peroid.any how it helpful for trader