In today’s article, I just want to share some other moving averages that I use on all of my swing trade analysis. When I swing trade I focus mostly on the daily and hourly charts.

Every now and then I’ll check out a weekly chart just to determine the overall glimpse of the trade and what it’s doing.

The averages I use are the 100 and 200 simple moving averages. I’ve heard tales of other traders and fund managers using 100,200,300 even 400 and sometimes they are simple or exponential.

The calculation of the simple average is easy. What was the closing price of the last 200 days? Add them together. Divide by 200. Bam, that’s the extent of the 200 simple average. Here are a few ways I use these tools.

  • I use the averages as a guide to determine the long term trend of a stock.
  • I use them as support and resistance prices
  • They can easily determine great buying locations for bullish companies
  • They can also be used as nice selling locations for a bearish stock that’s popping into resistance.


For example just recently I was in a bullish trade on FIT for just a few weeks. FIT has only recently formed it’s 100 and 200 simple averages since it’s a newer IPO. The 100 SMA was my target to sell the long position.

 I hope this helps! If you want some of this information in a video form, feel free to watch this video.