← Glossary · Charts and indicators
Moving average
The average price over recent days, recalculated each day. Smooths out swings.
A moving average (MA) is the mean of the closing prices over, say, the last 50 or 200 days. Each day a new price is added and the oldest drops out, hence "moving".
If the price is above the 200-day average, the long-term trend is considered intact; below it, damaged. When a short average crosses a long one, some investors read it as a change of trend. The MA always lags the price a little.
