Should we use the 200 day EMA or SMA?

[murray t turtle]

MA and SMA are one in the same.

And then there are the equally useless EMA or XMA, WMA,and on and on ...

When all you need is price.

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I would not now or anytime name an ema or wma useless.
I use a wma less but mainly because one of my chart services does not have it.
Sma + ema + wma 200 dma are very important...…………………………………………………………………………………………………………………………...
WMA looks real cool; I may glance @ it; but etfs can go up big or down big on small volume or big volume/ so its like a WSJ 65 dma=too little/too late.
But if it helps WSJ sell papers=ok buy that newspaper /LOL

 

[orbit23]

I would also call 200MA useless prior to having used it.

I saw Tudor mention it and i decided to put it on my chart just as an experiment. Found it to be very useful.

 

[SunTrader]

I'm all "ears". How is it useful?

Here is SPX daily with SMA 200, does nothing for me:

 

[orbit23]

For me it's more so a way of generating setups or to provide confluence. And i see it as a level.

Higher lows off of support(200MA) == bullish...

Red line is 200MA. Blue is 100, yellow is 20. As i said, i haven't found much use for the other 2, but i'm keeping them for now.... I don't want a chart cluttered with moving averages though, so very low opacity on anything but the 200.

I buy support and sell resistance and that's how i view the 200MA... As support and resistance, and it seems like other traders and algos are using it too, so i would say it is a level that has an edge. The probability is, that it will have an influence.

 

[SunTrader]

That is EMA 200 on daily chart (and I presume same on H4 chart) which sometimes lines up and sometimes doesn't. I posted on my daily chart SMA 200 which sometimes lines up and ... sometimes doesn't. Kind of how MA's "work".

But what I never see from those who use any of the dozens of variations of MA's is what they do the times MA's don't line up and price continues on its merry way straight on through? Or in cases when price goes many standard deviations away from MA 200 (Feb and March of this year as recent examples) and reverses at some point back towards MA 200 - all the time MA 200 barely moves off its "course"?

 

[orbit23]

Wouldn't know, but as i said for myself, it's just an area of context. Same as with support/resistance.. can't know if it will hold or not, but i view it as an area where buyers or sellers might step in and provide a reaction.

Can't just put a moving average on the chart and expect profits though.

 

[easymon1]

i like to use the 200sma as a target sometimes when taking a trade between the fitty and 200, in the direction of the 200, know what i mean vern?

 

[speedo]

I've read many traders recommend the 200 day MA. Some will recommend the EMA, others SMA. What in your experience is the most reliable?

There are both "reliable" for what they are intended to show....average price over a defined period. The EMA or WMA simply weight toward more recent prices in the period as they might be considered more relevant to current price.