A 200-bar SMA is common proxy for the long term trend. 50-bar SMAs are typically used to gauge the intermediate trend. Shorter period SMAs can be used to determine shorter term trends. SMAs are commonly used to smooth price data and technical indicators.

What should my SMA be?

Beyond the 20SMA, you are looking at primary trends. The 50 – SMA – used by traders to gauge mid-term trends. The 200 – SMA – welcome to the world of long-term trend followers. Most investors will look for a cross above or below this average to represent if the stock is in a bullish or bearish trend.

Which moving average is best?

21 period: Medium-term and the most accurate moving average. Good when it comes to riding trends. 50 period: Long-term moving average and best suited for identifying the longer-term direction.