Disliked{quote} gr8 analysis kindly post often for discussion: why some traders use high $ ma like yours 50 + 200 ma vs. others use low # like 10 + 20 ma? thanks for your time cheersIgnored
Its not a bad question at all and I suspect a lot of people don't realise why traders are using such diverse moving averages (I'm sure we'll get some other views too)
The most common MA's are the 50 and 200 sma's on institutional charts, so the banks and large funds view the 200 sma as indicating the master trend and the 50 gives short term direction.
On lower time frames traders will use 9, 18 and 21 sma's and exponential ma's to determine entry and exit as a trending strategy. There are other strategies which use a combination of other indicators and moving averages to determine trend direction and the best entry and exit points to trade. If you search around FF you'll find quite diverse views. However on the Daily TF the 50 and 200 sma's give an institutional view... The further apart they are when moving in the same direction the stronger the trend is thought to be.
Trade safe.