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I don't give moving averages much merit. Instead of giving a picture of what the price is doing now, it just lags behind and shows what the price has done in the past.

Alot of funds use the 200day moving average as a filter.

As a stand alone thing, i'll use a simple system to demonstrate to you what the 200day moving average is like as a buying signal

1992 - 2009 on the ASX 300, here is the code i have used

//Buy when crossing 200day ma

//Sell when going back under the 200day ma

Buy = Cross(H,MA(C,200));

Sell = Cross(MA(C,200),L);

PositionSize = -5;

And here is the result

I hope that from this you can draw your own conclusion on the 200day moving average.

Personally i use a 40 day moving average filter on the XJO for systems design, it is robust and seems to work in most situations.

Cheers

Bradley