MA 200
Trend
The 200-day average: the dividing line between a bull and a bear market over the long term.
Construction & calculation
- Average of the closing prices over the past 200 trading days (about 10 months).
- Drawn as EMA(200) in the scanner's charts; used as a classic SMA(200) in the Golden Cross logic.
SMA(200) = sum of the last 200 closing prices / 200
Interpretation
- Above the MA200 = structurally bullish climate. Many institutional mandates buy nothing below this line.
- The slope of the MA200 is a good long-term filter: rising = take buy signals more seriously, falling = take sell signals more seriously.
- A first test of the MA200 after a long advance is usually a buying opportunity; a third or fourth test becomes more dangerous.
Watch-outs & pitfalls
- Extremely slow. A reversal is only confirmed months later — that is the price of its reliability.
- Requires at least 200 trading days of history; young listings do not have this line.