200 SMA ?Is it So important?

[ezincenter]

In my strategy I use the simple 200 moving average as giving signal with the CCI indicator as a filter and confirmation to my entry signal, but right now I am planing to use the 200 Bollinger band to see the difference.

[naziafarhan]

Yes if you see then you will discover that 200 sma works as dynamic support and resistance I never used this tool for cross trading strategy but I only use the 200 sma for this advantage of it. Thanks. For opening this thread.

[sibali]

SMA 200 nice idea for a good area for support area or areas as resistance. Moreover, it can serve as a decisive trend. For other indicators it is required in order to make predictions more accurate.

[yogesh]

100 and 200 days SMA are quite important price levels where market feels a lot pressure breaking these levels, so we can trade having those levels as support or resistance and earn repeated profits.

[ericnyamu]

the thing about 200 sma is that very many people are looking at it even the big boys who move the market and thus it becomes very important but like all moving averages its suicidal to use it on smaller time frames as it can give very many false signals !

[norix]

SMA could be a strong indicator of the trade, we make very good signal for the start of commerce marketplace we, could we see such a picture if you give it and use the 200 sma on h4 can be very helpful when the time is right to enter

[rahibul]

The first thing to do, every day for trading to take a look at the daily chart, including the 200-day simple moving average. If the price is above the 200-day SMA, the trend is upward. If the price is below the 200-day SMA, the trend is downwards.
Currently, the 200-day SMA a good starting point, but you must not quit. Of course you would not go for too long if the price is above the 200-day SMA, but the price drops.

[joget]

yup, I've heard about this 200 Simple MA, and I checked the history and it would be useful if used as a barrier, and if combine with other indicators it would be more useful, but I prefer to use 200 Bollinger Bands, because the midle of BB is equal to 200 Simple MA, so here I got two additional lines the upper and lower BB.

[xiaotanghao]

200 SMA gives you a very clear identification of trend as it calculates moving average of closing prices of last 200 periods that's whay relying on it can give better and better results. But do not use it alone , i use colored MACD as a filter with 200 SMA to determine the trend.

Thank you so much for your teaching.Maybe you have showed me a very great strategy to use 200 SMA in my MT4 platform.If I can manage it better during my follow trading in forex,I think I will be glad to know its importance here.Wish you a success in forex.

[ermaniso2011]

l also read from different articles that 200 sma is used by so many professionals as a support indicator.it will always show the main trend which you have to focus on.personally l havent try it since it is very confusing when using in small time frames like 15 m.l could see it very close to the trend line and it dont looks realistic since it change the position in each time frame.