

Moving averages are technical analysis indicators that help smooth out price data by averaging prices over a specified period. They are used to identify trends and support/resistance levels. Here's a brief explanation of the three moving averages you mentioned:
1. 20-Day Simple Moving Average (SMA): This moving average is calculated by adding the closing prices of the past 20 days and dividing them by 20. It is considered short-term and is often used to identify short-term trends and potential entry or exit points for day traders.
2. 100-Day Simple Moving Average (SMA): The 100-day SMA is calculated by averaging the closing prices of the past 100 days. It is considered medium-term and is often used to identify longer-term trends and potential changes in momentum.
3. 200-Day Simple Moving Average (SMA): The 200-day SMA is calculated by averaging the closing prices of the past 200 days. It is considered long-term and is often used to identify major trends and potential turning points in the market.
Using multiple moving averages like these can provide a more comprehensive view of price movements. By comparing the trends and crossovers of these moving averages, traders can identify potential buy or sell opportunities. However, it's important to note that moving averages are not foolproof and should be used in conjunction with other technical analysis tools and market analysis to make informed trading decisions.
