They are used to get confirmed trends and good for investors. For traders, they are not good as traders want to have something is fast and reflects the market movements in 5 mins, 15 mins.
Golden and death crosses are good for investors to make decision with market trends. Trend is a friend. [Tutorial] Golden cross VS death cross
Topic: Stupid question: MA 200 and 50 Day (Read 80 times)
Thanks for that
I am just trying to analysis this market now and its doing my head in
I am just trying to analysis this market now and its doing my head in
OK stupid question but I hear alot about the 200 Day moving average. is that Just MA set at 200 when using a daily chart
Yes. The 200-MA is short for "200-period MA." You can apply it to any time frame: 200-week, 200-day, 200-hour.....
and does the same hold true for the 50 day MA when looking for golden or death crosses and can it be applied to hourly or 15 min charts.
Traditionally, golden crosses and death crosses refer to daily 50/200 crosses. But in theory, sure, it could be applied to lower time frames. Like jackg said, lower time frames are generally less reliable.
Also what is the difference between MA and EMA in this context
People use both MAs and EMAs for cross analysis. Everyone has their own preferences but the principle is the same.
EMAs weigh more recent data heavier than older data. So they have less lag than regular MAs but also more false positives when looking for signals.
For TA, the larger the timezone the more accurate the analysis from it. Much like comparing a second chart to an hourly or daily chart you can get information from the lower timezones but it'll probably be less acurrate. (200 hours is less than a week!).
OK stupid question but I hear alot about the 200 Day moving average. is that Just MA set at 200 when using a daily chart or does it mean something else and does the same hold true for the 50 day MA when looking for golden or death crosses and can it be applied to hourly or 15 min charts.
Also what is the difference between MA and EMA in this context
Thanks
Also what is the difference between MA and EMA in this context
Thanks
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