Moving average
Updated 2026-09-20
Definition
The average price of the last n periods: it smooths swings and shows direction.
Why it matters
It can be simple (SMA) or exponential (EMA, more reactive). It's used as a trend filter and as dynamic support/resistance. The 50- and 200-period averages are among the most followed. It's a lagging indicator.
Practical example
Price above the 50 EMA and the EMA rising: a bullish context to look for buys on pullbacks.
Learn more
Course lesson: Technical indicators: moving averages, RSI, MACD, Bollinger and ATRRelated entries
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Educational content, not financial advice. Trading involves risk.