What is a 200 day moving average?

It can be used to identify market trends. According to some investors, a healthy stock will consistently close above the 200 day moving average. Read full definition. In depth view into Dow Jones Industrial Average 200-Day Simple Moving Average including historical data from 1930, charts and stats.

What is a 200-day moving average trading strategy?

The 200-day moving average trading strategy is frequently used as an indicator in the financial markets. Who hasn’t heard about the “Death Cross”, “support at the moving averages”, “the trend is positive because the price is above the averages”, etc.? Among the moving averages, the 200-day moving average is probably the most used and referred to.

What are the pros and cons of the 200-day moving average?

The main advantages of the 200-day moving average are simplicity, riding the trend, and playing defense. However, without a recession and falling prices, you are unlikely to beat buy-and-hold because of the many whipsaws. As with most things in life, the 200-day moving average comes with both pros and cons.