What is a 50-day moving average?

Daily charts in both MarketSmith and Investors.com identify the 50-day moving average as the bright red line weaving horizontally through the chart. If you're looking at a weekly chart, you can find the 50-day line's nearly identical twin: the 10-week line. The 10-week moving average tracks a stock's weekly closes over the past 10 weeks.

Why is 50 a good moving average?

During trends, price respects it so well and it also signals trend shifts. 50 period: The 50 moving average is the standard swing-trading moving average and is very popular. Most traders use it to ride trends because it’s the ideal compromise between too short and too long term.

What is a 50-day moving average (SMA)?

Long-term trend traders commonly use the 50-day SMA, whereas intraday stock or forex traders often employ a 50-day exponential moving average on a one-hour chart. Watch for times when the price of a market leading stock breaks below the 50-day moving average on heavy volume and can't sustain a rally back above it.