Have you ever wondered how some traders seem to effortlessly identify long-term trends and make informed decisions about when to buy or sell? One of their secret weapons is often the 200-day moving average (200 DMA). This powerful technical indicator acts as a significant barometer of a stock's health, offering insights into its long-term momentum.
If you're a Webull user and you're keen to unlock this valuable tool for your own trading, you've come to the right place! This comprehensive, step-by-step guide will walk you through exactly how to get the 200-day moving average on Webull, along with a deeper dive into what it means and how you can use it effectively.
Step 1: Log In and Select Your Stock – Let's Get Started!
First things first, let's get you logged into your Webull account.
Open the Webull App or Website: Launch the Webull application on your mobile device or navigate to the Webull website (webull.com) on your desktop.
Enter Your Credentials: Input your registered email/phone number and password to log in.
Choose Your Stock: Now, here's where the magic begins! In the search bar at the top, type in the ticker symbol of the stock you want to analyze. For instance, if you're interested in Apple, you'd type
AAPL. Once you find it, tap or click on the stock to open its detailed quote page.
Isn't it exciting to think about the insights you're about to uncover for your favorite stocks?
Step 2: Navigate to the Charting Interface
Once you're on the stock's detailed quote page, you'll see a wealth of information. To access the charting tools, you'll need to locate the chart itself.
Locate the Chart: Typically, the main chart displaying the stock's price movements will be prominently featured. On the mobile app, you might need to scroll down slightly. On the desktop, it's usually front and center.
Expand the Chart (Optional but Recommended): For a better viewing experience, especially on mobile, you might want to expand the chart to full-screen mode. This is usually done by tapping an icon that looks like two arrows pointing outwards or a diagonal arrow.
A larger chart gives you a much clearer picture of price action.
Step 3: Access Indicator Settings
Now that you're in the charting interface, it's time to add our star indicator – the 200-day moving average.
Find the Indicator Icon: Look for an icon that typically represents "indicators" or "settings." This often looks like a small gear, a set of lines with dots, or simply the word "Indicators." Its exact placement might vary slightly between the mobile app and the desktop platform, but it's usually near the top or bottom of the chart.
Tap/Click to Open: Tap or click on this icon to open the list of available technical indicators.
Webull offers a vast array of indicators, but we're focusing on one of the most powerful today!
Step 4: Add the Moving Average (MA) Indicator
Within the indicator menu, you'll find various options. We're looking for "Moving Average" or "MA."
Search for "MA" or "Moving Average": You might see a search bar within the indicator menu, or you might need to scroll through a list. Type "MA" or "Moving Average" to quickly find it.
Select "MA" or "Moving Average": Once you locate it, tap or click on "MA" or "Moving Average" to add it to your chart.
Congratulations! You're one step closer to visualizing long-term trends.
Step 5: Configure the Moving Average Period to 200 Days
This is the crucial step where we specify that we want a 200-day moving average. By default, Webull might add a 5-day, 10-day, or 20-day moving average. We need to change that.
Access MA Settings: After adding the MA indicator, you'll usually see a small gear icon or "Settings" next to "MA" on the chart itself, or within the indicator list you just used. Tap or click this.
Change the Period: Within the MA settings, you'll find a field labeled "Period," "Length," or "N." This is where you enter the number of days for your moving average. Delete the default number and enter
200.Choose "Simple" (or "SMA"): Moving averages can be calculated in different ways (Simple, Exponential, Weighted, etc.). For the 200-day moving average, the most commonly used and universally understood type is the Simple Moving Average (SMA). Ensure that "SMA" or "Simple" is selected as the Type. If it's not explicitly stated, Webull often defaults to SMA.
Confirm/Apply Changes: After entering
200and ensuring the type is correct, confirm your changes by tapping "Done," "Apply," or a similar button.
You've just unlocked a powerful long-term trend indicator!
Step 6: Customize Line Style and Color (Optional but Recommended)
While not strictly necessary, customizing the appearance of your 200 DMA can make it stand out and be easier to identify on your chart.
Access MA Settings Again: Go back into the settings for your 200 MA (as in Step 5).
Change Color: You'll likely see a "Color" option. Choose a color that contrasts well with the price candles and any other indicators you might have on your chart. A common color for the 200 DMA is red, blue, or purple.
Adjust Line Style/Thickness: Some platforms allow you to change the line thickness or style (e.g., solid, dashed). A slightly thicker line can make the 200 DMA more prominent.
Confirm/Apply Changes: Save your customization.
A visually distinct 200 DMA will make your analysis much smoother.
Understanding the 200-Day Moving Average
Now that you have the 200-day moving average beautifully displayed on your Webull chart, let's briefly discuss what it means and why it's so important.
The 200-day moving average is calculated by taking the average closing price of a stock over the past 200 trading days. As new days pass, the oldest day's price is dropped, and the newest day's price is added, creating a continuously updated line that smooths out short-term price fluctuations.
Key Interpretations:
Long-Term Trend: The 200 DMA is primarily used to identify the long-term trend of a stock.
When the stock price is above the 200 DMA, and the 200 DMA is sloping upwards, it generally indicates an uptrend.
When the stock price is below the 200 DMA, and the 200 DMA is sloping downwards, it generally indicates a downtrend.
Support and Resistance: The 200 DMA can often act as a significant level of support (where prices tend to bounce up from) in an uptrend, or resistance (where prices tend to fall from) in a downtrend.
Trend Reversals: A decisive break above a downward-sloping 200 DMA or a decisive break below an upward-sloping 200 DMA can signal a potential trend reversal.
"Golden Cross" and "Death Cross": These are popular signals involving the 50-day and 200-day moving averages.
Golden Cross: When the 50-day MA crosses above the 200-day MA, it's often seen as a bullish signal.
Death Cross: When the 50-day MA crosses below the 200-day MA, it's often seen as a bearish signal.
How to Use the 200-Day Moving Average in Your Trading
The 200 DMA isn't a standalone magical indicator, but it's incredibly powerful when used in conjunction with other analysis.
Confirming Trends: Use it to confirm your initial assessment of a stock's long-term direction. If you think a stock is in an uptrend, check if it's trading above its 200 DMA.
Entry and Exit Points: Some traders use bounces off the 200 DMA as potential buying opportunities in an uptrend or consider a break below it as a signal to reduce exposure or exit a position.
Risk Management: Knowing the long-term trend helps you align your trades with the larger market flow, potentially reducing risk. For instance, being long (buying) a stock that is firmly below its 200 DMA might be considered higher risk.
Filtering Stocks: You can use the 200 DMA to filter stocks. For example, only consider buying stocks that are trading above their 200 DMA for long-term positions.
Remember, no single indicator guarantees success, but the 200 DMA provides a valuable framework for understanding market behavior.
Final Thoughts
Congratulations! You've successfully learned how to add and configure the 200-day moving average on Webull. You've also gained a fundamental understanding of its significance in technical analysis. Start practicing by applying this knowledge to different stocks on your Webull watchlist. The more you observe and analyze, the more intuitive its application will become. Happy trading!
Frequently Asked Questions (FAQs)
How to delete a moving average on Webull?
To delete a moving average, go to the indicator settings (Step 3), locate the moving average you want to remove, and you should see an "X" or a "Delete" option next to it. Tap or click that to remove it from your chart.
How to add multiple moving averages on Webull?
You can add multiple moving averages by repeating Step 4 (Add the Moving Average Indicator) for each additional MA you want. Then, in Step 5, configure each one to a different period (e.g., 50, 100, 200) and consider giving them different colors (Step 6) for clarity.
How to change the type of moving average (SMA, EMA, etc.) on Webull?
When configuring the moving average (Step 5), there will be an option for "Type" or "Formula." Here, you can select between Simple Moving Average (SMA), Exponential Moving Average (EMA), Weighted Moving Average (WMA), etc.
How to save chart layouts on Webull with the 200 DMA?
Webull often saves your chart layouts automatically per stock. If you add the 200 DMA to a stock's chart, it should remain there when you revisit that stock. For more advanced layout saving or templates, check Webull's desktop platform features, as mobile app features can be more limited.
How to use the 200 DMA in conjunction with other indicators on Webull?
The 200 DMA works well with volume, RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), and candlestick patterns. For instance, a break above the 200 DMA on high volume is generally considered a stronger signal.
How to identify a "Golden Cross" on Webull using the 200 DMA?
To identify a Golden Cross, you'll need to add both a 50-day moving average and a 200-day moving average to your chart (as explained in this guide). A Golden Cross occurs when the 50-day MA crosses above the 200-day MA. Visually, you'll see the shorter-term average cross over the longer-term one.
How to identify a "Death Cross" on Webull using the 200 DMA?
Similar to the Golden Cross, you'll need both the 50-day and 200-day moving averages on your chart. A Death Cross occurs when the 50-day MA crosses below the 200-day MA. You'll see the shorter-term average dip below the longer-term one.
How to analyze a stock's trend using the 200 DMA on Webull?
Observe the relationship between the stock price and the 200 DMA. If the price is consistently above and the 200 DMA is sloping upwards, it's an uptrend. If the price is consistently below and the 200 DMA is sloping downwards, it's a downtrend. Sideways 200 DMA indicates consolidation.
How to interpret price bouncing off the 200 DMA on Webull?
When a stock in an uptrend pulls back and then bounces off the 200 DMA, it often indicates that the 200 DMA is acting as support, and the uptrend is likely to continue. Conversely, in a downtrend, if the price rallies and then falls from the 200 DMA, it suggests the 200 DMA is acting as resistance.
How to use the 200 DMA for long-term investing decisions on Webull?
For long-term investing, many investors prefer to buy stocks that are trading above their 200-day moving average, signaling a healthy long-term uptrend. A break below the 200 DMA can be a signal to re-evaluate the investment or consider reducing exposure if the long-term trend appears to be reversing.
