Breadth SMA 200: The Market Health Metric That Turns Alerts Into a System

SMA 200 is a Simple Moving Average calculated from the last 200 candles. On a chart it looks like a single line, but in practice it works as a market regime filter: is the market currently favoring buyers or sellers?

On crypto-resources.com, we use SMA 200 not only on individual charts, but also as a market-wide breadth metric. This helps us understand overall conditions and respond more consistently to real-time screener alerts.

What is SMA 200?

SMA 200 (Simple Moving Average) is the average price of the last 200 candles on a chosen timeframe.

On the 30-minute timeframe, 200 candles represent about 100 hours (roughly four days) of price action. That makes SMA 200 on 30m a practical medium-term reference for crypto: it helps identify trend conditions and regime shifts over multiple sessions.

Why traders use SMA 200

SMA 200 answers a core question: are you trading with the market or against it?

Traders rely on SMA 200 for three reasons:

• Trend filter: price above SMA 200 tends to favor long setups; price below SMA 200 tends to favor short or defensive setups.
• Dynamic support/resistance: the market often reacts around SMA 200 during pullbacks, retests, and regime flips.
• Consistency: SMA 200 helps standardize decisions and reduce emotional trading.

Our breadth_sma200 metric

On our site you can track breadth_sma200: the percentage of coins trading above their own SMA 200 on the 30-minute timeframe.

This is a market-wide snapshot that shows whether strength is broad or narrow:

• 60–90%: most coins are above SMA 200, conditions are typically stronger, and risk appetite is higher.
• 10–40%: most coins are below SMA 200, conditions are weaker, and defensive positioning tends to make more sense.
• 40–60%: mixed conditions with more false moves; selectivity and lower risk usually perform better.

Why breadth_sma200 matters

Breadth measures how widespread a move is. A few large coins can look strong while the broader market is weak. Breadth helps you see whether momentum is market-wide or concentrated in a small group.

It can also flag regime shifts early. When breadth starts falling, internal market strength often deteriorates before that becomes obvious on individual charts. When breadth improves after a weak phase, it can signal that the market is rebuilding.

Most importantly, breadth is a risk management tool. It helps answer whether it’s a day to press the gas or a day to protect capital.

A simple breadth_sma200 rulebook

• Risk-On: breadth_sma200 > 60%
• Prioritize trend-following long setups. Breakouts, pullbacks, and momentum continuation tend to be more reliable.
• Neutral: breadth_sma200 40–60%
• Expect more noise and false moves. Reduce risk and take only A-grade setups.
• Risk-Off: breadth_sma200 < 40%
• Prioritize shorts or capital preservation. Longs should be selective, quick, and well-confirmed.

The 50% level is a practical divider: above it, the market is broadly “above its average”; below it, broadly “below its average.”

How to use breadth_sma200 with our real-time event screener

Screener sends alerts at the moment an event happens: open interest spikes, pump moves, and liquidation bursts.

Breadth turns those alerts into a structured workflow:

• Risk-On (>60%): prioritize alerts that fit long conditions.
• Risk-Off (<40%): prioritize alerts that fit short/defensive conditions.
• 40–60%: focus on the cleanest situations and reduce risk.

What to check inside an alert

• OI up + price up: trend participation, often continuation-friendly.
• OI up + price flat: positioning or build-up; wait for a range break.
• Liquidations spike: acceleration—either a final push or a washout reversal; watch the post-event reaction.
• Pump alert: avoid chasing; execute via retest and confirmation rather than inside the impulse candle.

Common mistakes

• Treating breadth as an entry signal. It’s a regime filter, not a buy/sell button.
• Trading against the regime too aggressively.
• Ignoring liquidity, which makes events and indicators noisy.

Enable alerts and trade by market regime

Everyone receives alerts. Results belong to traders who filter them.

• Risk-On (>60%): focus on long scenarios; short signals go on hold.
• Neutral (40–60%): lower risk and take only high-quality setups.
• Risk-Off (<40%): focus on short/defensive scenarios; long signals become selective.

Interpret alerts consistently:

• OI ↑ + price ↑: trend phase.
• OI ↑ + price flat: positioning.
• Liquidations ↑: final push or washout reversal—watch reaction.
• Pump alert: don’t chase; trade the retest.

Enable alerts and trade by market regime

Conclusion

SMA 200 is a time-tested filter. breadth_sma200 is the next step: a market health metric that helps you decide when to lean into our screener alerts and when to reduce risk and ignore noise.

Trading events without a regime filter is randomness. Trading events with regime rules is a repeatable process.

The indicator is available for free to registered users on this page

https://crypto-resources.com/ru/dashboard/indicator/market-median/