What's the difference between 100 and 200 SMA?

<p id="isPasted">The main difference between a 100 Simple Moving Average (SMA) and a 200 SMA lies in the period they consider for calculating the average price. The 100 SMA averages the price over the last 100 periods (days, hours, etc.), while the 200 SMA averages the price over the last 200 periods. This difference in period affects how sensitive they are to price changes and how they are used to identify trends.&nbsp;</p><p>Here's a more detailed breakdown:</p><p>100 SMA:</p><p>Sensitivity: Reacts more quickly to recent price changes due to the shorter period.&nbsp;</p><p>Trend Identification: Helps identify medium-term trends.&nbsp;</p><p>Support/Resistance: Can act as dynamic support or resistance levels, but may be less reliable than the 200 SMA for long-term trends.&nbsp;</p><p>Example: If a stock price crosses above its 100 SMA, it could suggest a medium-term uptrend.&nbsp;</p><p>200 SMA:</p><p>Sensitivity:</p><p>Slower to react to price changes due to the longer period, providing a smoother trend line.&nbsp;</p><p>Trend Identification:</p><p>Primarily used to identify long-term trends, both bullish and bearish.&nbsp;</p><p>Support/Resistance:</p><p>Often considered a stronger support or resistance level than the 100 SMA, especially for long-term investors.&nbsp;</p>