Moving average (50-day & 200-day)

A moving average smooths a stock’s price by averaging its recent closing prices — the 50-day and 200-day are the most-watched trend lines.

A moving average (MA) is the average of a stock’s closing price over a set number of trading days, recalculated each day so it "moves" with the price. It filters out day-to-day noise to show the underlying trend. The two most-followed are the 50-day MA (a medium-term trend line) and the 200-day MA (the long-term trend line).

Traders read the price’s position relative to these lines: a stock trading above its 200-day average is generally considered to be in a long-term uptrend, and one below it in a downtrend. The 200-day line often acts as a rough zone of support (in an uptrend) or resistance (in a downtrend), which is why so many market participants watch it.

stocks-llm computes the simple 50-day and 200-day moving averages nightly from delayed daily-close prices. A moving average describes where the price has been, not where it is going — it is context, not a buy or sell signal.

Stocks above their 200-day average →

See more terms in the stocks-llm glossary.

Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.