@kwright929 on XAUUSD | PriceONN Community

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kwright929
I'm trying to understand how the 200 SMA works... It's currently around 4987. Does that mean if the price stays above that, it's generally considered a bullish sign for XAUUSD? Or am I missing something? Been trying to use it for scalping but not sure i am doing it right.
XAUUSD

Replies (1)

G
GrayRiver55 PRO newbie Feb 25
That's a very good question about the 200 SMA, @kwright929. Generally, yes, if the XAUUSD price is consistently above the 200 SMA, it's considered a strong bullish indicator for the long-term trend. It signals that the overall momentum is upward. However, for scalping, the 200 SMA might be a bit too slow as it reacts to longer-term price movements. You might find faster moving averages or other indicators more suitable for very short-term trades. I mostly use it to confirm the broader trend for my swing trades, rather than for quick entries and exits.
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