The 100 and 200 Simple Moving Average

How many of you use the 100 and 200 Simple Moving average in your trading? How accurate have you found them in terms of trend recognition, support and resistance etc?

I dont use 100 or 200 but I do use 10, 21 and 50. I tend to try to use them as a form of support or resistance and trade with the trend.

I also use them on hourly, 4 hourly and daily charts.

I don't really use them in a consolidation phase.

True, MAs suck in sideway market, yet I have seen they do provide SRs.

the 150 and 365 ema's are better. pull up a chart on a daily and look at what price does around the 365.

jim

yes they do if you play crosses of two or more ma,s. if you play pullbacks to one good one like the 150 or 365 sideways markets are sometimes easier than a trending one.

jim

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Thanks James. What will we do without you.

The 30, 50 and 100 SMAs are FANTASTIC to recognize healthy trending markets if you know how to use them. I base my trend-trading setups on those three SMAs. I personally dont use the 200 SMA, too slow for my taste.

Well, I agree 200 SMA is slow, but look at gbpjpy and eurjpy yesterday on the 4H chart. Just plot the 200 SMA and take a look.

Yes I agree that the 200 SMA holds some truth when it comes to point out the longer scope of a trend, but in my opinion the retrace price has got to undertake to retest the 200 SMA is so deep into the trend that I personally dont feel confortable entering the market after such a deep retrace. That's why I myself stick mostly to the 30 and 50 SMA for trend-determination, since they embody the short term swings which, in my opinion, are easier to ride.

True, I don't use 200 SMA for trend, but for support and resistance.

I have found that it is better if I use different comdinations for short-medium-long timeframe between fx spot and equiteis. I find that the fx market is more volatile over equities so you might need to tighten up the lengths.

In forex I use: 7sma-20sma-65sma

In stocks: 10sma-50sma-200sma

Even after that simplification- some of the jpy crosses need even more tighter combinations. I wonder if a way exsists to backtest ma lengths to correspond with the different cycles?

I also use 50, 100 and 200 SMA for Support and Resistance.

The big institutional guys typically use 50 and 200 period SMAs on daily and weekly time frames for S/R. Sometimes the 20 SMA is used for shorter term S/R, and I don't think they even bother with smaller time frames.

I find the 20 SMA a bit too quick in reacting to a trend change and so find many false signals. I think anything below 50 Ma is not worth for medium-long term charts.

My personal thoughts.

Good Point Jim but just in case the root was lost...
365 {days} = 1 Calendar Year
312 {days} = 1 Forex Year
hth to all

Any MA length providing Support/resistance is purely coincidental.

True. But not always and the one time you tell the other traders that they are full of it for respecting 'an MA no less' is the time they will hand you your account with a request for a cheque for the balance.

I'll gladly hand over my account balance any time a MA happens to make right call in return for receiving my account balance back doubled, tripled, quadrupled every time is it wrong.

Each one to his own.

example chart