[isatrader]

Hi all, is it too late to say happy new year! (first post of 2021)

A question regarding the 50 day SMA and the 10 week SMA. On the charts for the daily and weekly they don't line up. The 10 week SMA always seems about 5-7% higher. What could be the reason for this, and if they need to remain unaligned, generally which one (daily or weekly) to traders trade around?

Thanks

They are never going to be the same as averaging from different data points. i.e daily versus weekly, but the 50 day MA is the closest approximation to the 10 week MA. But in terms of short term trading the 50 day MA is essential, as it is heavily used by the vast majority of traders and numerous trading methods for buying points and sell rules.

Generally if the stock is below a declining 50 day MA, then in the short term it's an avoid until it can recover back above it.