Moving Average

Technical Indicators

A moving average (MA) smooths out price data by creating a constantly updated average price over a specified period. Common periods are 20, 50, and 200 days. The simple moving average (SMA) weights all periods equally; the exponential moving average (EMA) weights recent prices more heavily.

Moving averages cut through daily price noise to reveal the underlying trend. The 200-day MA is the most widely watched: stocks above it are generally in uptrends; below it, downtrends.