![]() Most traders choose between two types of moving averages when they make moving average strategies: the simple moving average ( SMA) or the exponential moving average ( EMA). Simple moving average or exponential moving average? If you are afraid of many traders and investors getting the same signal on the same day, you can use another moving average that is reasonably close to the 200-day average. However, there might be a reasonable explanation for why you could, for example, go for a 182-day moving average, or 213 for that matter: To avoid crowding. Furthermore, 200 days is a long average and thus captures the long-term trend. You risk curve fitting if you optimize to another number of days. There is no particular reason to use a 200-day moving average (200 MA) than, for example, 183 days except that it’s a round number. Why a 200-day moving average, why not 183?
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