Plain-English definitions, reviewed by an independent investor
Moving Average
A moving average smooths price over a window so trends are easier to see through the noise.
A moving average smooths price over a window so trends are easier to see through the noise.
MA = Average of the last N closing prices
Why it matters
It is the backbone of most chart-based trend reading.
Common confusion
Averages lag; they confirm trends after they start, not before.
Frequently Asked Questions
50-day vs 200-day?
Shorter reacts faster; the 200-day is the classic long-term trend line.
Death cross?
When a short average crosses below a long one, read as a bearish signal.