What is 200SMA?

[Saeedfx]

Hi all

Does anyone know what is 200SMA and 3SMA?

Thanks.

[priest9]

SMA = Single Moving Average

200SMA means the average of the close of the 200 previous candles
3SMA means the average of the close of the 3 previous candles

Incredible Charts: Moving Averages

[harold_hsu]

One more thing to add is that the 200SMA will differ among different timeframes.

In the EURUSD currency pair for example, the 200SMA for the 1-hour timeframe will be different from the 200SMA for the 4-hour timeframe.

Just so that you get a clearer idea.

[bossxero]

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