I know that you guys watch the 200 SMA, but do you pay attention to the 200 EMA as well? It seems to me that many a move hits resistance or holds support at this level. (December 12, 2001)
For a review, we use the exponential moving averages in the 10, 18, and 50 day MVA and the simple on the 200 day MVA. The reason we do that is the accuracy. The exponential averages tend to work best on the shorter term averages. We use the 200 day simple MVA because institutions tend to use that level. However, if the exponential starts to work better, we will shift to that. We have noticed that with individual stocks it is showing some better predictive value. We are not totally shifting over to it, but we are running it on our charts now as well. Good eyes.
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