SMA = Single Moving Average
200SMA means the average of the close of the 200 previous candles
3SMA means the average of the close of the 3 previous candles
One more thing to add is that the 200SMA will differ among different timeframes.
In the EURUSD currency pair for example, the 200SMA for the 1-hour timeframe will be different from the 200SMA for the 4-hour timeframe.
Just so that you get a clearer idea.
An addition to what have already been said above... about the 200 SMA.
How do most traders use the 200SMA ?
Most of us thinks that the 200SMA acts as a strong support/resistance line. It like a dynamic S/R. If you plot a 200SMA or EMA on a chart and scroll back in history, you will notice how often price will bounce from it. Also, when in an uptrend, price will usually be above the 200SMA/EMA and the reverse for downtrend. If its going above and below the 200SMA on and on in whipsaws, then market is undecided and is ranging. I hope I have added some useful stuff to this.
All the best
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Hi all
Does anyone know what is 200SMA and 3SMA?
Thanks.