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An average of a security's price over a specific number of periods, updated as new data becomes available.
Moving averages smooth out price data to identify trend direction. The Simple Moving Average (SMA) weights all prices equally. The Exponential Moving Average (EMA) gives more weight to recent prices, making it more responsive to new information. Common periods include 50-day and 200-day. When the 50-day crosses above the 200-day, it is called a "golden cross" (bullish signal). The reverse is a "death cross" (bearish signal). Moving averages also serve as dynamic support and resistance levels, with stocks often bouncing off their 50-day or 200-day moving averages.