Moving Average (MA)
A line that averages price over a set period, smoothing noise to reveal the underlying trend.
A moving average plots the average price over a chosen window, then redraws it each new period. A 50-day MA averages the last 50 daily closes. It strips out day-to-day noise so the broader trend is easier to see: a rising line means an uptrend, a falling line a downtrend.
Traders watch certain levels closely. The 200-day MA is a common line in the sand between bull and bear regimes. When a shorter average crosses above a longer one, a 'golden cross,' some read it as bullish; the reverse, a 'death cross,' as bearish. Moving averages lag by design, confirming moves rather than predicting them.
Related terms
Price levels where buying or selling has repeatedly stalled a move, marking floors and ceilings on a chart.
CandlestickA chart symbol showing an asset's open, close, high, and low for a given time period.
BullishDescribes an expectation that a price will rise, or a trader positioned to profit from gains.
BearishDescribes an expectation that a price will fall, or a position set up to gain when it does.