The 200 Day Moving Average

The 200 Day Moving Average

From dailyfx.com

One of the most popular indicators in the world is the 200 Day Simple Moving Average. This indicator can be found on the charts of many investment banks, hedge funds, and market makers as a key point of analysis for a multitude of reasons. The indicator’s usage has become so widespread that it will often be looked at in Fundamental analysis; for the premise that so many traders may be watching the indicator that corresponding reactions may be seen when price encounters this stalwart of the chart. For example, during the Financial Crisis the EURUSD currency pair lost over 3500 pips in value (21.58%) in only 3 ½ ... (full story)

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FerruFx

Nov 16, 2012 2:07am

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It is powerful, like S/R ... simply because everybody watch at it.

ForExtraPips

Nov 15, 2012 11:42pm

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Quoting Scorpion786

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Yep great Indicator works well with the 50 MA I alwayas look around the 200 and 50 MA for potential Gains

Ignored

50, 100, and 200 works for me. GL

Scorpion786

Nov 15, 2012 11:40pm

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Yep great Indicator works well with the 50 MA I alwayas look around the 200 and 50 MA for potential Gains

jaygee

Nov 16, 2012 5:13am

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Quoting jaygee

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hey if everyone is trading off of it, doesn't that dictate where price will go? Isn't that the idea. If most everyone buys a decline of price to the 200 dma and it bounces it is not a self fulfilling prophesy, it is price movement because of buyers at a particular level. just my 2 cent worth.

Ignored

lol. it doesn't matter what the number is. It matters that most traders trade off of it. I posted this the other day.

Spreadbetter

Nov 16, 2012 6:47am

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Imagine you're an FX trader at one of the institutions that move the market and not part of the 8% retail market that the majority posters on here are part of, what would you play off? Support, resistance, (the 3 levels of), the 200 MA all plotted on a daily chart? Perhaps Fib retracements? Round and psyche numbers? All actioned at zero spread cost through your lightning quick 3000 xtra.