Moving Average (MA)

Category: science

A technical indicator that smooths out price data by creating a constantly updated average price over a specific time frame.

Moving averages filter out the "noise" of daily price swings. A 50-day Simple Moving Average (SMA) gives the average closing price over the last 50 days; when a stock’s current price crosses above its SMA, it is often interpreted as a bullish signal indicating an upward trend.

Common Examples

• Our algorithmic screener flags stocks that have just crossed above their 200-day moving average, signaling a potential long-term trend reversal.
• The simple moving average acts as a dynamic support level; if the price dips to touch it, buyers often step in to defend the trend.