DAILYSMA

Discussion in 'Ask any question!' started by mrfumanshuu, Jun 24, 2019.

  1. mrfumanshuu

    mrfumanshuu New Member

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    Can someone explain to me what dailysma is used for and how you use it? Thank you
     

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  2. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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  3. Stan

    Stan Member

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    Daily Simple Moving Average?
     
  4. T0rm3nted

    T0rm3nted Moderator
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    I'd check out the link posted above, but to put it simply, the SMA is just the average price over the last 200 trading days (as long as your chart is showing daily prices). You don't really "use it" alone, it's more of an indication to show you what's happened over a trading period (in this case 200 days or 50 days). Sometimes it will act as support or resistance, but it's not like it's a guarantee. Sometimes there will be moving average crossovers that can indicate a move up or down, but they're not creating that move, they're just showing you that it happened.
     
  5. mrfumanshuu

    mrfumanshuu New Member

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    Thank you all for your replies. I understand SMA however on Thinkorswim there is this indicator called DailySMA and I am not sure if that is the same as SMAs because it shows dotted lines by default?
     
  6. T0rm3nted

    T0rm3nted Moderator
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    I don't have ToS software anymore, but I'm just spitballing that the DailySMA indicator probably leaves the DAILY SMA on the chart. If you added just SMA, that would change to whatever timeframe you are viewing the chart in. So for example 200 DailySMA would be equal to the 200SMA if you were viewing a normal daily chart, but if you go to the hourly chart, the 200 DailySMA would remain the same, while the 200SMA would update to 200 hours average, instead of days. Make sense?

    That's just a guess, but you could very quickly test it.
     
  7. Gray Wolf

    Gray Wolf Well-Known Member

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    In Think of Swim when you are in the "Edit Studies" to add them bring up the Daily SMA and note the question mark to the right of it. Click on that and it gives you a fairly good explanation of what it is used for. If that is still not clear, their customer service is very good with helping with such things. Just give their 800 number a call.
     
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