Zerodha moving average Kite

Moving average 200 on weekly/monthly charts (Kite)

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Moving average with 200 periods is a popular technical indicator. On daily charts it averages 200 trading days (~10 months). On weekly and monthly charts, it represents materially different lookbacks: weekly = ~4 years, monthly = ~17 years.

This article explains the computation and the practical considerations.

Period meaning on each timeframe

A 200-period MA on:

  • 1-min chart: ~200 minutes (~3.3 hours of trading).
  • Hourly: ~200 hours (~30 trading days, ~6 weeks).
  • Daily: 200 trading days (~10 months).
  • Weekly: 200 weeks (~3.85 years).
  • Monthly: 200 months (~16.67 years).

Data history requirement

For a 200-period MA on monthly chart, you need at least 200 months (16.67 years) of historical data. For most Indian stocks, this is available; for newer listings (e.g., post-2010 IPOs), 200-month MA may not be computable until enough history exists.

Common interpretation

The 200-day MA is the canonical long-term trend indicator. Price above 200-day MA = bullish long-term trend; price below = bearish.

On weekly: 200-week MA represents ~4-year trend, useful for cyclical analysis.

On monthly: 200-month MA represents multi-cycle, ultra-long-term trend (decadal).

Common mistake

Users sometimes assume “200” is universal. On a monthly chart, 200-month MA covers 17 years of data; on a daily chart, 200-day MA covers 10 months. Same indicator, very different timeframes.

Adjust the period to your analysis horizon:

  • For long-term trend on daily: 200-day works.
  • For long-term trend on weekly: 50-week (~1 year) is often preferred.
  • For long-term trend on monthly: 24-month (~2 years) is often preferred.

The 200-period default is appropriate for daily; less appropriate for higher timeframes unless you specifically want 4-year or 17-year smoothing.

Computation on Kite

Kite computes MAs over the available data history. If not enough history exists for the specified period, the indicator shows partial / no values for older periods.

See also

External references

References

  1. Zerodha support documentation on moving average computation.
  2. Varsity technical analysis module.

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