What is a 50 day moving average?

The 50-day simple moving average is used by traders as an effective trend indicator. The 50-day average is considered the first line of support in an uptrend or the first line of resistance in a downtrend. If a stock's price moves significantly below the 50-day moving average, it's commonly interpreted as a trend change to the downside.

What is a 50-day moving average indicator?

The 50-day moving average indicator is one of the most important and commonly used tools in stock trading. Considered an “intermediate-term” indicator, it is a multiple of the longer-term 100 and 200 moving averages. It’s use is ubiquitous on any time frame.

What happens if a stock moves below the 50-day moving average?

If a stock's price moves significantly below the 50-day moving average, it's commonly interpreted as a trend change to the downside. A simple moving average places equal weight on each session's closing price while an exponential moving average places more weight on recent closing prices. What Is the 50-Day Simple Moving Average?