Trading & Charts

Moving Average

The average price over a set number of days, plotted as a smooth line.

A moving average smooths out the noise to show the underlying trend. Common ones are the 50-day and 200-day. Traders watch whether price is above or below them and when shorter and longer averages cross. Like all indicators, it describes the past and only hints at the future.

For example

A stock trading above its rising 200-day moving average is generally considered to be in a longer-term uptrend.

Related terms

MomentumSupport & Resistance

Back to the full glossary · Educational content only, not investment advice.