Thread: What is 200SMA?
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Old 02-08-2008, 11:44 AM
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An addition to what have already been said above... about the 200 SMA.

How do most traders use the 200SMA ?

Most of us thinks that the 200SMA acts as a strong support/resistance line. It like a dynamic S/R. If you plot a 200SMA or EMA on a chart and scroll back in history, you will notice how often price will bounce from it. Also, when in an uptrend, price will usually be above the 200SMA/EMA and the reverse for downtrend. If its going above and below the 200SMA on and on in whipsaws, then market is undecided and is ranging. I hope I have added some useful stuff to this.

All the best
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