Thread by @SalehTrades_

🚨 Here's a Twitter thread explaining the 200EMA (200-day exponential moving average) and how to use it: #200EMA

1. The 200EMA is a popular technical analysis indicator that helps traders and investors identify trends in the market. It is calculated by taking the average closing price of a security over the past 200 days and applying an exponential weighting to it.

2. The 200EMA is often used as a longterm trend indicator, as it smooths out the noise in the price data and helps to identify the overall trend of the market. If the price is above the 200EMA, it is considered an uptrend. If the price is below the 200EMA, it is considered a DT

3. In addition to identifying trends, the 200EMA can also be used as a support or resistance level. If the price bounces off the 200EMA, it may be an indication that the trend is likely to continue. If the price breaks through the 200EMA, it may indicate a change in trend.

4. One important thing to keep in mind is that the 200EMA is a lagging indicator, meaning it is based on past price data and may not always accurately predict future price movements. It is important to use the 200EMA with other technical indicators and analysis techniques.

5. To use the 200EMA, you will need access to a charting platform that allows you to plot the indicator on your price chart. Simply select the 200EMA from the list of indicators. You can then use the 200EMA as a reference point for your analysis and trading decisions.

6. In conclusion, the 200EMA is a useful technical analysis tool for identifying trends and potential support and resistance levels. It should be used in conjunction with other indicators and analysis techniques, and traders should be aware of its lagging nature.

Here is another example of support and resistance using the 200EMA that couldn't be uploaded for some reason.