GlossarySMA 200
SMA 200
The SMA 200 is the simple average of the chart's last 200 closing prices. On the daily chart it is the well-known 200-day line, the most quoted boundary between a long-term uptrend and downtrend.
Calculation
Each of the 200 candles counts equally, 0.5% each. The line only starts at the 200th candle. The current candle counts with its current price.
It is calculated on the chart's candles. On the daily chart that is 200 days (trading days for stocks), on the 4H chart only a little over 33 days and on the weekly chart 200 weeks.
What it is used for
- As a long-term trend filter: a price above a rising SMA 200 counts as a bull market, below it as a bear market.
- As major support or resistance that many market participants trade around.
- With the SMA 50 in the Golden Cross and Death Cross.
- The distance of the price from the SMA 200 shows how far a market has run. Large distances usually shrink again.
Settings
| Setting | Default | Effect |
|---|---|---|
| Length | 200 | 1–500 candles. The menu name stays, the line label shows the new length. |
Tip If you want to see the 200-day line on any interval, even on the 15-minute chart, use SMA 200 · 1D. It always calculates on daily candles.